Total sources of $168,949,386 ($39,361,999 equity and $129,587,387 loan proceeds) fund the $154,463,808 purchase price, $8,447,469 acquisition fee, and $3,306,408 in front-end offering expenses. Reserves of $500,000 are allocated for property improvements and master tenant requirements.
Total Fees & Expenses
$3,306,408
% of equity
8.40%
% of offering
1.96%
$500,000 including reserves (0.30% of offering)
Where the offering proceeds go
Acquisition Cost$156.70M92.7%
Offering Expenses$3.31M2.0%
Reserves$500K0.3%
Unallocated / other uses$8.45M5.0%
Total fees & expenses
$3.31M
1.96% of offering
Offering expenses
$3.31M
1.96% of offering
Reserves held
$500K
0.30% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $8,447,469 | 21.46% | 5.00% |
| Title & Recording Costs | $1,351,427 | 3.43% | 0.80% |
| Reserves (Loan Proceeds) | $0 | 0.00% | 0.00% |
| Reserves (Lender Required) | $0 | 0.00% | 0.00% |
| Reserves (Master Tenant) | $500,000 | 1.27% | 0.30% |
| Reserves (Lumped) | $500,000 | 1.27% | 0.30% |
| Reserves (Improvements) | $500,000 | 1.27% | 0.30% |
| Loan & Lender Expenses | $88,130 | 0.22% | 0.05% |
| Finance Expenses | $88,130 | 0.22% | 0.05% |
| Total Acquisition Cost | $156,695,509 | 398.09% | 92.75% |
| Total Acq. Cost (Reserves) | $165,642,978 | 420.82% | 98.04% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $492,025 | 1.25% | 0.29% |
| Placement Agent Fee | $649,473 | 1.65% | 0.38% |
| O&O Expenses | $196,810 | 0.50% | 0.12% |
| Third Party DD | $30,057 | 0.08% | 0.02% |
| Total Offering Expenses | $3,306,408 | 8.40% | 1.96% |
| Total Fees / Expenses | $3,306,408 | 8.40% | 1.96% |
| Total Upfront Fees (Reserves) | $500,000 | 1.27% | 0.30% |
Strengths
- $500,000 allocated to property and master tenant reserves
- Fully identified sources and uses of capital
Concerns
- $8,447,469 acquisition fee reduces net invested equity
- $3,306,408 in upfront offering expenses