Capital sources of $45,670,000 equity and $48,855,000 debt are deployed toward property purchase, $4,338,650 in upfront fees, $1,795,000 in carry costs, $1,333,859 in finance expenses, and reserves.
Total Fees & Expenses
$4,338,650
% of offering
9.50%
All-equity offering — load on equity equals load on offering price.
Where the offering proceeds go
Acquisition Cost$90.19M197.5%
Offering Expenses$4.34M9.5%
Reserves$2.53M5.5%
Total fees & expenses
$4.34M
9.50% of offering
Offering expenses
$4.34M
9.50% of offering
Reserves held
$2.53M
5.53% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $830,000 | 1.82% | 1.82% |
| Title & Recording Costs | $215,002 | 0.47% | 0.47% |
| Reserves (Loan Proceeds) | $173,565 | 0.38% | 0.38% |
| Reserves (Lender Required) | $180,000 | 0.39% | 0.39% |
| Reserves (Master Tenant) | $2,173,049 | 4.76% | 4.76% |
| Reserves (Lumped) | $2,173,049 | 4.76% | 4.76% |
| Reserves (Improvements) | $2,173,049 | 4.76% | 4.76% |
| Finance Expenses | $1,333,859 | 2.92% | 2.92% |
| Total Acquisition Cost | $90,186,350 | 197.47% | 197.47% |
| Total Acq. Cost (Reserves) | $90,186,350 | 197.47% | 197.47% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,740,200 | 6.00% | 6.00% |
| Dealer Fee | $685,050 | 1.50% | 1.50% |
| Wholesaling Fee | $456,700 | 1.00% | 1.00% |
| O&O Expenses | $485,875 | 1.06% | 1.06% |
| Carry Costs | $1,795,000 | 3.93% | 3.93% |
| Total Offering Expenses | $4,338,650 | 9.50% | 9.50% |
| Total Fees / Expenses | $4,338,650 | 9.50% | 9.50% |
Strengths
- Dedicated reserves funded for master tenant improvements ($2,173,049)
- Lender-required reserves ($180,000) funded at closing
Concerns
- Finance expenses total $1,333,859
- Upfront offering fees total $4,338,650