Gross offering equity of $12,625,000 is used alongside debt to fund the property purchase, $1,230,937.5 in front-end expenses, $900,000 in master tenant reserves, and $53,036 in title and recording costs.
Total Fees & Expenses
$1,230,938
% of offering
9.75%
All-equity offering — load on equity equals load on offering price. · $963,501 including reserves (7.63% of offering)
Where the offering proceeds go
Acquisition Cost$30.37M240.5%
Offering Expenses$1.23M9.8%
Reserves$963K7.6%
Total fees & expenses
$1.23M
9.75% of offering
Offering expenses
$1.23M
9.75% of offering
Reserves held
$963K
7.63% of offering
Cost of Acquisition
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $53,036 | 0.42% | 0.42% |
| Reserves (Loan Proceeds) | $62,906 | 0.50% | 0.50% |
| Reserves (Master Tenant) | $900,000 | 7.13% | 7.13% |
| Reserves (Lumped) | $900,000 | 7.13% | 7.13% |
| Finance Expenses | $1,031 | 0.01% | 0.01% |
| Total Acquisition Cost | $30,369,063 | 240.55% | 240.55% |
| Total Acq. Cost (Reserves) | $30,369,063 | 240.55% | 240.55% |
Offering Expenses
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $1,230,938 | 9.75% | 9.75% |
| Dealer Fee | $94,688 | 0.75% | 0.75% |
| Placement Agent Fee | $2,475,000 | 19.60% | 19.60% |
| O&O Expenses | $1,230,938 | 9.75% | 9.75% |
| Total Offering Expenses | $1,230,938 | 9.75% | 9.75% |
| Total Fees / Expenses | $1,230,938 | 9.75% | 9.75% |
| Total Upfront Fees (Reserves) | $963,501 | 7.63% | 7.63% |
Strengths
- $900,000 funded into master tenant reserves
- $62,906 allocated to loan proceeds reserves
Concerns
- Total front-end offering expenses equal $1,230,937.5