Proceeds from the $48,900,000 equity raise and $40,801,000 debt fund the $78,566,250 purchase price, $3,342,140 in improvement reserves, $3,740,850 in offering load, and transaction costs.
Total Fees & Expenses
$3,740,850
% of offering
7.65%
All-equity offering — load on equity equals load on offering price. · $3,342,140 including reserves (6.83% of offering)
Where the offering proceeds go
Acquisition Cost$78.57M160.7%
Offering Expenses$3.74M7.6%
Reserves$3.95M8.1%
Total fees & expenses
$3.74M
7.65% of offering
Offering expenses
$3.74M
7.65% of offering
Reserves held
$3.95M
8.07% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Reserves (Lender Required) | $305,148 | 0.62% | 0.62% |
| Reserves (Master Tenant) | $300,000 | 0.61% | 0.61% |
| Reserves (Improvements) | $3,342,140 | 6.83% | 6.83% |
| Loan & Lender Expenses | $1,140,826 | 2.33% | 2.33% |
| Finance Expenses | $1,140,826 | 2.33% | 2.33% |
| Total Acquisition Cost | $78,566,250 | 160.67% | 160.67% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,445,000 | 5.00% | 5.00% |
| Placement Agent Fee | $562,350 | 1.15% | 1.15% |
| BD Due Diligence Allowance | $244,500 | 0.50% | 0.50% |
| BD Marketing Allowance | $489,000 | 1.00% | 1.00% |
| O&O Expenses | $230,000 | 0.47% | 0.47% |
| Third Party DD | $200,000 | 0.41% | 0.41% |
| Carry Costs | $1,227,906 | 2.51% | 2.51% |
| Total Offering Expenses | $3,740,850 | 7.65% | 7.65% |
| Total Upfront Fees (Reserves) | $3,342,140 | 6.83% | 6.83% |
Strengths
- Substantial improvement reserves of $3,342,140 funded directly from proceeds.
Concerns
- Carry costs require an allocation of $1,227,906.