55 unit MF cap rate?

Question

I'm looking at a property for sale, what cap rates are these size deals going for in Jerome Powell's market?

Thanks for any help.

Mark Walker · Answer

Thank you, good advice.

Gino Barbaro · Answer

@Mark Walker

I would look at most recent sales, and see where they traded. Conversations with brokers in the market are also helpful. Be careful, cap rates can change for city to city, market to market, neighborhood to neighborhood.

Charles Carillo · Answer

@Mark Walker

Cap rates vary by asset class (A, B, C, D), condition, and vintage of the asset and the market, to name a few things. Local brokers in your market will know the current cap rates for the property class, mainly based on recent comparable sales. You could also ask them for some of their recently sold listings, and you can compare the properties and the cap rate they traded at with the subject property you are looking at.