Equity proceeds of $42,950,000 and loan proceeds of $41,774,000 fund the $74,600,000 acquisition, $4,144,675 in total expenses, and multiple reserve escrows. Reserves include $2,294,947 for improvements, $3,209,362 from loan proceeds, $238,163 for lender requirements, and $108,694 for the master tenant.
Total Fees & Expenses
$4,144,675
% of equity
9.65%
% of offering
4.89%
Where the offering proceeds go
Acquisition Cost$41.77M49.3%
Offering Expenses$4.14M4.9%
Reserves$5.85M6.9%
Unallocated / other uses$32.95M38.9%
Total fees & expenses
$4.14M
4.89% of offering
Offering expenses
$4.14M
4.89% of offering
Reserves held
$5.85M
6.91% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $298,400 | 0.69% | 0.35% |
| Title & Recording Costs | $436,061 | 1.02% | 0.51% |
| Reserves (Loan Proceeds) | $3,209,362 | 7.47% | 3.79% |
| Reserves (Lender Required) | $238,163 | 0.55% | 0.28% |
| Reserves (Master Tenant) | $108,694 | 0.25% | 0.13% |
| Reserves (Improvements) | $2,294,947 | 5.34% | 2.71% |
| Finance Expenses | $1,031 | 0.00% | 0.00% |
| Total Acquisition Cost | $41,774,000 | 97.26% | 49.31% |
| Total Acq. Cost (Reserves) | $41,774,000 | 97.26% | 49.31% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $171,800 | 0.40% | 0.20% |
| Wholesaling Fee | $429,500 | 1.00% | 0.51% |
| BD Due Diligence Allowance | $429,500 | 1.00% | 0.51% |
| BD Marketing Allowance | $429,500 | 1.00% | 0.51% |
| O&O Expenses | $536,875 | 1.25% | 0.63% |
| Third Party DD | $50,000 | 0.12% | 0.06% |
| Total Offering Expenses | $4,144,675 | 9.65% | 4.89% |
| Total Fees / Expenses | $4,144,675 | 9.65% | 4.89% |
Strengths
- Extensive reserve funding including $2,294,947 for improvements
- $3,209,362 in reserves from loan proceeds
Concerns
- Upfront offering expenses consume $4,144,675 of capital proceeds