Gross proceeds fund the $76,500,000 acquisition, $4,878,680 in offering fees, $1,530,000 in financing expenses, and $5,248,509 in reserves.
Total Fees & Expenses
$4,878,680
% of equity
9.38%
% of offering
6.00%
Where the offering proceeds go
Acquisition Cost$86.83M95.3%
Offering Expenses$4.88M5.4%
Reserves$9.20M10.1%
Total fees & expenses
$4.88M
6.00% of offering
Offering expenses
$4.88M
5.36% of offering
Reserves held
$9.20M
10.10% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $2,295,000 | 4.41% | 2.52% |
| Title & Recording Costs | $150,000 | 0.29% | 0.16% |
| Reserves (Lender Required) | $3,149,130 | 6.06% | 3.46% |
| Reserves (Master Tenant) | $5,248,509 | 10.10% | 5.76% |
| Reserves (Lumped) | $5,248,509 | 10.10% | 5.76% |
| Reserves (Improvements) | $802,283 | 1.54% | 0.88% |
| Finance Expenses | $1,530,000 | 2.94% | 1.68% |
| Total Acquisition Cost | $86,825,466 | 167.02% | 95.32% |
| Total Acq. Cost (Reserves) | $87,106,658 | 167.56% | 95.62% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $5,465,569 | 10.51% | 6.00% |
| Dealer Fee | $1,559,560 | 3.00% | 1.71% |
| BD Due Diligence Allowance | $1 | 0.00% | 0.00% |
| O&O Expenses | $200,000 | 0.38% | 0.22% |
| Third Party DD | $100,000 | 0.19% | 0.11% |
| Total Offering Expenses | $4,878,680 | 9.38% | 5.36% |
| Total Fees / Expenses | $4,878,680 | 9.38% | 5.36% |
Strengths
- Robust reserve capitalization of $5,248,509 funded at closing
- Dedicated improvement reserves of $802,283 and lender reserves of $3,149,130
Concerns
- Total front-end offering expenses equal $4,878,680
- Financing expenses total $1,530,000