Gross offering equity proceeds of $27,929,065 are combined with $25,300,000 in loan proceeds to fund the purchase, reserves ($2,918,400 total), and financing/offering expenses.
Total Fees & Expenses
$2,738,084
% of equity
7.75%
% of offering
6.00%
Where the offering proceeds go
Acquisition Cost$50.49M94.9%
Offering Expenses$2.74M5.1%
Reserves$5.26M9.9%
Total fees & expenses
$2.74M
6.00% of offering
Offering expenses
$2.74M
5.14% of offering
Reserves held
$5.26M
9.89% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,150,000 | 4.12% | 2.16% |
| Title & Recording Costs | $25,000 | 0.09% | 0.05% |
| Reserves (Loan Proceeds) | $2,343,400 | 8.39% | 4.40% |
| Reserves (Lender Required) | $418,400 | 1.50% | 0.79% |
| Reserves (Master Tenant) | $575,000 | 2.06% | 1.08% |
| Reserves (Improvements) | $1,925,000 | 6.89% | 3.62% |
| Finance Expenses | $997,581 | 3.57% | 1.87% |
| Total Acquisition Cost | $50,490,981 | 180.78% | 94.86% |
| Total Acq. Cost (Reserves) | $53,229,065 | 190.59% | 100.00% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $1,675,744 | 6.00% | 3.15% |
| Dealer Fee | $488,759 | 1.75% | 0.92% |
| Placement Agent Fee | $488,759 | 1.75% | 0.92% |
| Wholesaling Fee | $209,468 | 0.75% | 0.39% |
| BD Due Diligence Allowance | $279,291 | 1.00% | 0.52% |
| BD Marketing Allowance | $279,291 | 1.00% | 0.52% |
| O&O Expenses | $294,291 | 1.05% | 0.55% |
| Third Party DD | $10,500 | 0.04% | 0.02% |
| Carry Costs | $558,581 | 2.00% | 1.05% |
| Total Offering Expenses | $2,738,084 | 9.80% | 5.14% |
| Total Fees / Expenses | $2,738,084 | 9.80% | 5.14% |
Strengths
- $1,925,000 dedicated for property improvements
- $575,000 allocated for master tenant reserves
Concerns
- Selling commissions of 6.00% of gross cash proceeds
- Broker-dealer allowances total $558,582 across marketing and due diligence