Total capitalization of $91,382,493 is deployed into property acquisitions ($41,700,000), upfront reserves ($11,167,631+), financing costs ($2,179,840), and offering fees/expenses ($4,710,763).
Total Fees & Expenses
$4,710,763
% of equity
9.00%
% of offering
5.15%
$13,117,407 including reserves (14.35% of offering)
Where the offering proceeds go
Acquisition Cost$78.26M85.6%
Offering Expenses$4.71M5.2%
Reserves$19.58M21.4%
Total fees & expenses
$4.71M
5.15% of offering
Offering expenses
$4.71M
5.15% of offering
Reserves held
$19.58M
21.42% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $395,677 | 0.79% | 0.43% |
| Reserves (Loan Proceeds) | $6,467,631 | 12.84% | 7.08% |
| Reserves (Lender Required) | $6,467,631 | 12.84% | 7.08% |
| Reserves (Master Tenant) | $4,500,000 | 8.93% | 4.92% |
| Reserves (Lumped) | $8,407,407 | 16.69% | 9.20% |
| Reserves (Improvements) | $200,000 | 0.40% | 0.22% |
| Finance Expenses | $2,179,840 | 4.33% | 2.39% |
| Total Acquisition Cost | $78,264,323 | 155.34% | 85.64% |
| Total Acq. Cost (Reserves) | $86,671,730 | 172.03% | 94.85% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $755,737 | 1.50% | 0.83% |
| BD Due Diligence Allowance | $629,781 | 1.25% | 0.69% |
| BD Marketing Allowance | $629,781 | 1.25% | 0.69% |
| O&O Expenses | $302,295 | 0.60% | 0.33% |
| Third Party DD | $821,631 | 1.63% | 0.90% |
| Total Offering Expenses | $4,710,763 | 9.35% | 5.15% |
| Total Fees / Expenses | $4,710,763 | 9.35% | 5.15% |
| Total Upfront Fees (Reserves) | $13,117,407 | 26.04% | 14.35% |
Strengths
- Substantial reserve funding totaling $6,467,631 in lender reserves and $4,500,000 in master tenant reserves.
Concerns
- Upfront fees and expenses represent a 9% load on investor equity.