Milwaukee Eastside Cap Rates?

Question

Hey gang,

I know there's lots of Milwaukee cash flow investors on here, but I was wondering if we have any body that works the student housing and eastside (upper and lower) / Brady St. market on here?

I have an investor I'm working with and I'm trying to help run good numbers and get an idea for ROR. Obviously, the 2% rule doesn't apply in these A class areas, but anyone have a cap rate that they expect or demand for the area?

That'd be helpful in pricing properties.

Or if you work that market I'd love to get on the phone and ask you a few questions.

Let me know, and thanks in advance,

Best,

JTM

Michael Ouvrard · Answer

Hey @Joshua Martin, I started investing in the Brady St area this year. In fact, here's a link to an article I posted on here last month...

https://www.biggerpockets.com/forums/223/topics/36...

If you are referring to the multifamily market, as you know with the compressed cap rates, you are looking at 6%. I have been in touch with a commercial appraiser here in Milwaukee to help with my project, and he is seeing sub-6% all day. On the residential end, you can expect 7-9% cap rates and more closely following the 1-1.5% rule. As you said, this is a B+/A- area unlike the north and south sides.

Feel free to contact me with any questions. I'd love to share my experience.

Joshua Martin · Answer

Lol, @Michael Ouvrard, I was thinking of you when I wrote the post! The pharmacist right? With the tear down project off Brady St?

I'll PM you, and hopefully we can chat tomorrow.

Best,

JTM

Joshua Martin · Answer

Thanks brother, I'd appreciate it.

Marty Johnston · Answer

@Joshua Martin Hey man, I have a contact who invests in the UWM and southern Riverwest area. I'll give him a call while I'm at work and forward him your question. If he has some good info, Ill see if he minds me passing on his number. I'll let you know!

MJ