The $32,700,000 equity raise funds the $26,700,000 acquisition, $3,155,550 in offering fees/expenses, $1,043,864 in Master Tenant reserves, $768,000 in improvement reserves, and $547,336 in carry/financing costs.
Total Fees & Expenses
$3,155,550
% of offering
9.65%
All-equity offering — load on equity equals load on offering price. · $6,000,000 including reserves (18.35% of offering)
Where the offering proceeds go
Acquisition Cost$27.49M84.1%
Offering Expenses$3.16M9.7%
Reserves$1.81M5.5%
Unallocated / other uses$241K0.7%
Total fees & expenses
$3.16M
9.65% of offering
Offering expenses
$3.16M
9.65% of offering
Reserves held
$1.81M
5.54% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $534,000 | 1.63% | 1.63% |
| Title & Recording Costs | $66,750 | 0.20% | 0.20% |
| Reserves (Master Tenant) | $1,043,864 | 3.19% | 3.19% |
| Reserves (Lumped) | $1,043,864 | 3.19% | 3.19% |
| Reserves (Improvements) | $768,000 | 2.35% | 2.35% |
| Finance Expenses | $547,336 | 1.67% | 1.67% |
| Total Acquisition Cost | $27,491,586 | 84.07% | 84.07% |
| Total Acq. Cost (Reserves) | $28,935,450 | 88.49% | 88.49% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $1,962,000 | 6.00% | 6.00% |
| Dealer Fee | $130,800 | 0.40% | 0.40% |
| Wholesaling Fee | $327,000 | 1.00% | 1.00% |
| BD Due Diligence Allowance | $327,000 | 1.00% | 1.00% |
| BD Marketing Allowance | $327,000 | 1.00% | 1.00% |
| O&O Expenses | $408,750 | 1.25% | 1.25% |
| Third Party DD | $50,000 | 0.15% | 0.15% |
| Carry Costs | $547,336 | 1.67% | 1.67% |
| Total Offering Expenses | $3,155,550 | 9.65% | 9.65% |
| Total Fees / Expenses | $3,155,550 | 9.65% | 9.65% |
| Total Upfront Fees (Reserves) | $6,000,000 | 18.35% | 18.35% |
Strengths
- $1,043,864 in Master Tenant reserves funded upfront
- $768,000 allocated for property improvement reserves
- Clear accounting of all organizational and transactional line items
Concerns
- Front-end load of 9.65% on total offering equity
- Total upfront load including reserves reaches 22.47% of purchase price
- Carry and financing costs total $547,336 on an all-cash structure