The $21,530,000 equity raise is deployed toward the property acquisition, upfront reserves of $1,460,225, acquisition fees of $770,625, financing costs, and syndication expenses.
Total Fees & Expenses
$2,373,875
% of offering
11.03%
All-equity offering — load on equity equals load on offering price. · $1,460,225 including reserves (6.78% of offering)
Where the offering proceeds go
Net to Property$34.25M159.1%
Offering Expenses$2.37M11.0%
Reserves$1.44M6.7%
Total fees & expenses
$2.37M
11.03% of offering
Offering expenses
$2.37M
11.03% of offering
Reserves held
$1.44M
6.70% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $770,625 | 3.58% | 3.58% |
| Reserves (Lender Required) | $667,600 | 3.10% | 3.10% |
| Reserves (Improvements) | $775,000 | 3.60% | 3.60% |
| Loan & Lender Expenses | $612,773 | 2.85% | 2.85% |
| Finance Expenses | $612,773 | 2.85% | 2.85% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $1,291,800 | 6.00% | 6.00% |
| Dealer Fee | $215,300 | 1.00% | 1.00% |
| BD Due Diligence Allowance | $107,650 | 0.50% | 0.50% |
| BD Marketing Allowance | $172,240 | 0.80% | 0.80% |
| O&O Expenses | $371,585 | 1.73% | 1.73% |
| Total Offering Expenses | $2,373,875 | 11.03% | 11.03% |
| Total Upfront Fees (Reserves) | $1,460,225 | 6.78% | 6.78% |
Strengths
- Equity fully covers required reserves including $775,000 for improvements
- Lender-required reserves of $667,600 fully funded
Concerns
- Material portion of proceeds allocated to syndication and organizational fees
- Upfront fee burden exceeds 10% of total equity