Total gross offering proceeds of $122,691,529 are allocated to the $103,000,000 purchase price, $6,207,904 in front-end fees and expenses, $3,190,973 in loan/financing costs, $2,384,323 in carry costs, and $5,036,122 in total reserves.
Total Fees & Expenses
$6,207,904
% of equity
9.40%
% of offering
9.40%
$4,500,000 including reserves (3.67% of offering)
Where the offering proceeds go
Acquisition Cost$111.45M90.8%
Offering Expenses$6.21M5.1%
Reserves$5.04M4.1%
Total fees & expenses
$6.21M
9.40% of offering
Offering expenses
$6.21M
5.06% of offering
Reserves held
$5.04M
4.10% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $2,060,000 | 3.12% | 1.68% |
| Title & Recording Costs | $349,476 | 0.53% | 0.28% |
| Reserves (Loan Proceeds) | $536,122 | 0.81% | 0.44% |
| Reserves (Lender Required) | $536,122 | 0.81% | 0.44% |
| Reserves (Master Tenant) | $4,500,000 | 6.81% | 3.67% |
| Reserves (Lumped) | $536,122 | 0.81% | 0.44% |
| Reserves (Improvements) | $4,500,000 | 6.81% | 3.67% |
| Loan & Lender Expenses | $3,190,973 | 4.83% | 2.60% |
| Finance Expenses | $3,190,973 | 4.83% | 2.60% |
| Total Acquisition Cost | $111,447,503 | 168.75% | 90.84% |
| Total Acq. Cost (Reserves) | $116,483,625 | 176.38% | 94.94% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $7,361,492 | 11.15% | 6.00% |
| Dealer Fee | $924,581 | 1.40% | 0.75% |
| BD Due Diligence Allowance | $825,519 | 1.25% | 0.67% |
| BD Marketing Allowance | $825,519 | 1.25% | 0.67% |
| O&O Expenses | $495,311 | 0.75% | 0.40% |
| Third Party DD | $171,738 | 0.26% | 0.14% |
| Carry Costs | $2,384,323 | 3.61% | 1.94% |
| Total Offering Expenses | $6,207,904 | 9.40% | 5.06% |
| Total Fees / Expenses | $6,207,904 | 9.40% | 5.06% |
| Total Upfront Fees (Reserves) | $4,500,000 | 6.81% | 3.67% |
Strengths
- Allocates $4,500,000 upfront into master tenant improvement reserves.
- Lender required reserves are fully funded at $536,122.
Concerns
- Upfront fees and expenses total $6,207,904.
- Carrying costs of $2,384,323 funded from proceeds.