Proceeds fund the $34,700,000 purchase, transaction costs, and reserve accounts. Reserves include $1,300,000 for improvements, $331,465 lender reserves, and $250,000 master tenant reserves.
Total Fees & Expenses
$2,370,575
% of equity
92.96%
% of offering
6.00%
$4,197,425 including reserves (10.03% of offering)
Where the offering proceeds go
Acquisition Cost$41.87M100.0%
Offering Expenses$2.37M5.7%
Reserves$2.21M5.3%
Total fees & expenses
$2.37M
6.00% of offering
Offering expenses
$2.37M
5.66% of offering
Reserves held
$2.21M
5.29% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $528,138 | 20.71% | 1.26% |
| Title & Recording Costs | $54,147 | 2.12% | 0.13% |
| Reserves (Loan Proceeds) | $255,721 | 10.03% | 0.61% |
| Reserves (Lender Required) | $331,465 | 13.00% | 0.79% |
| Reserves (Master Tenant) | $250,000 | 9.80% | 0.60% |
| Reserves (Lumped) | $75,744 | 2.97% | 0.18% |
| Reserves (Improvements) | $1,300,000 | 50.98% | 3.10% |
| Loan & Lender Expenses | $145,827 | 5.72% | 0.35% |
| Finance Expenses | $48,866 | 1.92% | 0.12% |
| Total Acquisition Cost | $41,868,000 | 1641.88% | 100.00% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $2,370,575 | 92.96% | 5.66% |
| Placement Agent Fee | $225,700 | 8.85% | 0.54% |
| Wholesaling Fee | $203,130 | 7.97% | 0.49% |
| BD Due Diligence Allowance | $112,850 | 4.43% | 0.27% |
| BD Marketing Allowance | $225,700 | 8.85% | 0.54% |
| O&O Expenses | $170,000 | 6.67% | 0.41% |
| Third Party DD | $2,025 | 0.08% | 0.00% |
| Total Offering Expenses | $2,370,575 | 92.96% | 5.66% |
| Total Upfront Fees (Reserves) | $4,197,425 | 164.60% | 10.03% |
Strengths
- Significant $1,300,000 improvement reserve allocated upfront
- Comprehensive reserve structure across master tenant and lender escrows
Concerns
- Total upfront fee and reserve allocations reach $4,197,425
- Substantial syndication costs deducted from gross proceeds