Total capital raised comprises $39,486,498 in equity and $38,625,000 in debt to fund the purchase, $4,666,071 in reserves, and $3,731,474 in front-end fees. Carrying costs and lender expenses account for $2,552,074.
Total Fees & Expenses
$3,731,474
% of equity
9.45%
% of offering
6.00%
$2,250,000 including reserves (2.88% of offering)
Where the offering proceeds go
Acquisition Cost$71.82M91.9%
Offering Expenses$3.73M4.8%
Reserves$4.67M6.0%
Total fees & expenses
$3.73M
6.00% of offering
Offering expenses
$3.73M
4.78% of offering
Reserves held
$4.67M
5.97% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,665,000 | 4.22% | 2.13% |
| Title & Recording Costs | $256,116 | 0.65% | 0.33% |
| Reserves (Lender Required) | $310,471 | 0.79% | 0.40% |
| Reserves (Master Tenant) | $2,000,000 | 5.07% | 2.56% |
| Reserves (Lumped) | $310,471 | 0.79% | 0.40% |
| Reserves (Improvements) | $2,355,600 | 5.97% | 3.02% |
| Loan & Lender Expenses | $1,516,912 | 3.84% | 1.94% |
| Finance Expenses | $1,516,912 | 3.84% | 1.94% |
| Total Acquisition Cost | $71,819,554 | 181.88% | 91.94% |
| Total Acq. Cost (Reserves) | $74,380,024 | 188.37% | 95.22% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $4,686,690 | 11.87% | 6.00% |
| Dealer Fee | $552,811 | 1.40% | 0.71% |
| BD Due Diligence Allowance | $493,581 | 1.25% | 0.63% |
| BD Marketing Allowance | $493,581 | 1.25% | 0.63% |
| O&O Expenses | $315,892 | 0.80% | 0.40% |
| Third Party DD | $221,992 | 0.56% | 0.28% |
| Carry Costs | $1,035,162 | 2.62% | 1.33% |
| Total Offering Expenses | $3,731,474 | 9.45% | 4.78% |
| Total Fees / Expenses | $3,731,474 | 9.45% | 4.78% |
| Total Upfront Fees (Reserves) | $2,250,000 | 5.70% | 2.88% |
Strengths
- $2,000,000 allocated directly to Master Tenant reserve
- $2,355,600 allocated for future property improvements
Concerns
- $3,731,474 allocated to front-end syndication fees and expenses