Total sources of $179,124,000 fund the $155,000,000 purchase price, $10,570,000 in fees and expenses, and reserve accounts. Year 1 investor distribution is projected at 3.40%, averaging 3.64% over the full term.
Total Fees & Expenses
$10,570,000
% of equity
10.00%
% of offering
5.90%
$177,332,760 including reserves (99.00% of offering)
Where the offering proceeds go
Acquisition Cost$85.02M47.5%
Offering Expenses$10.57M5.9%
Reserves$9.71M5.4%
Unallocated / other uses$73.83M41.2%
Total fees & expenses
$10.57M
5.90% of offering
Offering expenses
$10.57M
5.90% of offering
Reserves held
$9.71M
5.42% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $3,100,000 | 2.93% | 1.73% |
| Title & Recording Costs | $813,359 | 0.77% | 0.45% |
| Reserves (Lender Required) | $532,836 | 0.50% | 0.30% |
| Reserves (Master Tenant) | $570,000 | 0.54% | 0.32% |
| Reserves (Lumped) | $6,229,048 | 5.89% | 3.48% |
| Reserves (Improvements) | $2,376,000 | 2.25% | 1.33% |
| Finance Expenses | $3,859,240 | 3.65% | 2.15% |
| Total Acquisition Cost | $85,016,712 | 80.43% | 47.46% |
| Total Acq. Cost (Reserves) | $179,124,000 | 169.46% | 100.00% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $6,342,000 | 6.00% | 3.54% |
| Dealer Fee | $528,500 | 0.50% | 0.30% |
| Wholesaling Fee | $1,057,000 | 1.00% | 0.59% |
| BD Due Diligence Allowance | $1,057,000 | 1.00% | 0.59% |
| BD Marketing Allowance | $1,585,500 | 1.50% | 0.89% |
| O&O Expenses | $1,585,500 | 1.50% | 0.89% |
| Third Party DD | $25,000 | 0.02% | 0.01% |
| Total Offering Expenses | $10,570,000 | 10.00% | 5.90% |
| Total Fees / Expenses | $10,570,000 | 10.00% | 5.90% |
| Total Upfront Fees (Reserves) | $177,332,760 | 167.77% | 99.00% |
Strengths
- $105,700,000 equity raise fully capitalized with debt
- Master tenant reserve funded at $570,000
Concerns
- Full-term average projected income yield is 3.64%
- Significant front-end offering expense load