The asset was acquired for $34,700,000, bringing the total acquisition cost to $41,868,000. Upfront transaction fees include a $528,138 acquisition fee and $2,370,575 in total front-end expenses.
Valuation ladder
Acquisition price$34.70M
Offering price$41.87M+20.7%
Premium / discount to appraised value
1%
Cap rate spread & load
Acquisition cap rate4.00%
Upfront load on offering6.00%
Load on equity92.96%
Load net of reserves0.38%
Acquisition Price
$34,700,000
Offering Price
$41,868,000
Appraised Value
—
Upfront Load
—
Load on Equity
—
Load on Offering Price
6%
Acquisition Cap Rate
4%
Syndicated Cap Rate
—
Premium / Discount
1%
Appraisal / Offering %
105.76%
Less Reserves %
—
Strengths
- Clear capitalization bridge from $34,700,000 acquisition to $41,868,000 cost
- Modest title and recording expenses of $54,147
Concerns
- Total front-end syndication and organization fees reach $2,370,575
- Acquisition fee of $528,138 paid at closing