The asset was acquired for $33,400,000, with total acquisition cost reaching $36,623,891 including reserves.
Valuation ladder
Acquisition price$33.40M
Offering price$40.47M+21.2%
Cap rate spread & load
Upfront load (all-equity)6.00%equity = offering price
Load net of reserves8.67%
Acquisition Price
$33,400,000
Offering Price
$40,468,388
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
6%
Acquisition Cap Rate
—
Syndicated Cap Rate
—
Premium / Discount
—
Appraisal / Offering %
—
Less Reserves %
—
Strengths
- Acquisition price of $33,400,000 for an industrial warehouse asset
- $334,000 in dedicated reserves
Concerns
- Carrying costs total $1,618,736