Total gross equity raised is $41,850,000 to fund the acquisition, fees, and reserves. For each 1% fractional interest, $40,385.25 in selling expenses is deducted from $418,500 gross, netting $378,114.75 per unit to the trust.
Total Fees & Expenses
$4,038,525
% of equity
9.65%
% of offering
5.37%
Where the offering proceeds go
Acquisition Cost$34.05M45.2%
Offering Expenses$4.04M5.4%
Reserves$3.01M4.0%
Unallocated / other uses$34.16M45.4%
Total fees & expenses
$4.04M
5.37% of offering
Offering expenses
$4.04M
5.37% of offering
Reserves held
$3.01M
4.00% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,304,000 | 3.12% | 1.73% |
| Title & Recording Costs | $213,957 | 0.51% | 0.28% |
| Reserves (Loan Proceeds) | $2,045,686 | 4.89% | 2.72% |
| Reserves (Lender Required) | $82,392 | 0.20% | 0.11% |
| Reserves (Improvements) | $880,000 | 2.10% | 1.17% |
| Finance Expenses | $1,002,150 | 2.39% | 1.33% |
| Total Acquisition Cost | $34,052,740 | 81.37% | 45.25% |
| Total Acq. Cost (Reserves) | $34,052,740 | 81.37% | 45.25% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $40,385 | 0.10% | 0.05% |
| Dealer Fee | $167,400 | 0.40% | 0.22% |
| Wholesaling Fee | $418,500 | 1.00% | 0.56% |
| BD Due Diligence Allowance | $418,500 | 1.00% | 0.56% |
| BD Marketing Allowance | $418,500 | 1.00% | 0.56% |
| O&O Expenses | $523,125 | 1.25% | 0.70% |
| Third Party DD | $50,000 | 0.12% | 0.07% |
| Total Offering Expenses | $4,038,525 | 9.65% | 5.37% |
| Total Fees / Expenses | $4,038,525 | 9.65% | 5.37% |
Strengths
- Fully defined sources and uses structure
- $33,405,000 fixed-rate debt in place
Concerns
- Selling commissions reduce net proceeds per 1% interest to $378,114.75
- Finance expenses total $1,002,150