What is an acquisition fee and how is it charged?
An acquisition fee of 0.50% is paid to us at the time a deal is acquired by the Fund. For example, if an asset were acquired for $40 million, we would earn an acquisition fee of $200,000. This fee is paid by the Fund and is used to cover costs and expenses incurred by us in pursuit of Fund properties. Note, this is not 50 basis points of investors’ equity, but rather 50 basis points in the gross purchase price, pro-rated over 2,000 investors.