I'm currently looking at a few older multi-family properties in the Oklahoma City area. What are the current CAP Rates in the area for older multi families and how would I find this out if not for this post? I am currently evaluating 12-24 unit deals. Any help would be appreciated. Thanks
Someone you can talk to about this information would be the listing agent on the property. They will have this information.
CBRE or other large commercial brokerages will also have whitepapers on this information. You can just search for them on google.
Another way would be to check the MLS and see what has recently sold and do the calculations yourself.
You can also reach out to local PM companies. Ask them what they think would be market rents for a property like this and what they've seen recently in terms of CAP rates.
As you have probably seen, most listings on Loopnet and commercial real estate sites list the Cap Rate on the term sheet. I tend to think that these calculations are untrustworthy and prefer my own but the brokers calculation gets you started. Lately, I have seen 7caps and 8caps on older multifamily properties that were recently remodeled located around the Paseo and OCU, and 10caps on similar properties that were not recently remodeled. But I would be interested in if you find something different.
All the best,
That will depend on the area and class of property. It looks like overall the cap rate on average is trading at a 6.8% cap rate. To get clear definition you should reach out to several of the commercial multi-family brokers for their research on your target neighborhood and property type. Marcus and Millichap, CBRE, Colliers, ARA Newmark and the likes usually have free research on their web site and many will break it down by property class.
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