Gross offering equity of $79,916,131 combined with debt proceeds funds the $151,700,000 acquisition, $1,150,000 in upfront reserves, and $5,993,710 in aggregate offering expenses.
Total Fees & Expenses
$5,993,710
% of offering
5.00%
All-equity offering — load on equity equals load on offering price. · $1,150,000 including reserves (0.71% of offering)
Where the offering proceeds go
Acquisition Cost$154.92M96.3%
Offering Expenses$5.99M3.7%
Reserves$1.15M0.7%
Total fees & expenses
$5.99M
5.00% of offering
Offering expenses
$5.99M
3.72% of offering
Reserves held
$1.15M
0.71% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $399,581 | 0.50% | 0.25% |
| Reserves (Loan Proceeds) | $1,150,000 | 1.44% | 0.71% |
| Reserves (Master Tenant) | $1,150,000 | 1.44% | 0.71% |
| Loan & Lender Expenses | $1,347,840 | 1.69% | 0.84% |
| Finance Expenses | $1,347,840 | 1.69% | 0.84% |
| Total Acquisition Cost | $154,922,421 | 193.86% | 96.28% |
| Total Acq. Cost (Reserves) | $154,922,421 | 193.86% | 96.28% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $3,995,807 | 5.00% | 2.48% |
| Dealer Fee | $799,161 | 1.00% | 0.50% |
| Placement Agent Fee | $799,161 | 1.00% | 0.50% |
| O&O Expenses | $399,581 | 0.50% | 0.25% |
| Total Offering Expenses | $5,993,710 | 7.50% | 3.72% |
| Total Fees / Expenses | $5,993,710 | 7.50% | 3.72% |
| Total Upfront Fees (Reserves) | $1,150,000 | 1.44% | 0.71% |
Strengths
- $1,150,000 in reserve proceeds set aside upfront
- Clear equity raise sizing of $79,916,131
Concerns
- $5,993,710 in total offering expenses deducted from proceeds
- O/O expense reimbursement reaches $1,000,000