Gross equity proceeds of $74,946,000 fund the acquisition balance after accounting for $6,520,302 in total fees and expenses.
Total Fees & Expenses
$6,520,302
% of offering
8.70%
All-equity offering — load on equity equals load on offering price. · $1,250,000 including reserves (1.67% of offering)
Where the offering proceeds go
Acquisition Cost$108.40M144.6%
Offering Expenses$6.52M8.7%
Reserves$1.26M1.7%
Total fees & expenses
$6.52M
8.70% of offering
Offering expenses
$6.52M
8.70% of offering
Reserves held
$1.26M
1.68% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $229,186 | 0.31% | 0.31% |
| Reserves (Loan Proceeds) | $1,250,000 | 1.67% | 1.67% |
| Reserves (Lender Required) | $9,375 | 0.01% | 0.01% |
| Reserves (Master Tenant) | $1,250,000 | 1.67% | 1.67% |
| Reserves (Lumped) | $1,250,000 | 1.67% | 1.67% |
| Reserves (Improvements) | $1,250,000 | 1.67% | 1.67% |
| Loan & Lender Expenses | $717,111 | 0.96% | 0.96% |
| Total Acquisition Cost | $108,400,000 | 144.64% | 144.64% |
| Total Acq. Cost (Reserves) | $108,400,000 | 144.64% | 144.64% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $3,747,300 | 5.00% | 5.00% |
| Dealer Fee | $3,747,300 | 5.00% | 5.00% |
| Placement Agent Fee | $749,460 | 1.00% | 1.00% |
| Wholesaling Fee | $1,086,717 | 1.45% | 1.45% |
| BD Due Diligence Allowance | $936,825 | 1.25% | 1.25% |
| BD Marketing Allowance | $936,825 | 1.25% | 1.25% |
| O&O Expenses | $374,730 | 0.50% | 0.50% |
| Third Party DD | $10,671 | 0.01% | 0.01% |
| Total Offering Expenses | $6,520,302 | 8.70% | 8.70% |
| Total Fees / Expenses | $6,520,302 | 8.70% | 8.70% |
| Total Upfront Fees (Reserves) | $1,250,000 | 1.67% | 1.67% |
Strengths
- Substantial equity raise of $74,946,000 fully funds property acquisition
Concerns
- $6,520,302 in front-end deductions from equity proceeds