CAP rate and comparable sales data - Minneapolis/St.Paul Area

4 Replies

@Jordan Rocca talk with brokers and see what their opinion of the market is. Reputable ones will be honest with you. I would also look at CBRE's data, they put out a report that details markets and cap rates for different asset types. That will only really help on larger deals though. 

For smaller multifamily, you might have luck calling an appraiser's office and asking their opinion. 

I use the CBRE cap-rate survey, and the IRR Viewpoint report.

As of the last Viewpoint, Class-B suburban multi-family in Minneapolis is 6.0. But like the CBRE report, that's going to be for larger deals, so you can't put too much stock in those reports if you're chasing smaller deals. Still, that's probably a reasonable floor.

Originally posted by @James Kojo :

I use the CBRE cap-rate survey, and the IRR Viewpoint report.

As of the last Viewpoint, Class-B suburban multi-family in Minneapolis is 6.0. But like the CBRE report, that's going to be for larger deals, so you can't put too much stock in those reports if you're chasing smaller deals. Still, that's probably a reasonable floor.

I saw a B class 6 cap in Minneapolis 3-4 years ago. You're lucky if you can find a C class for a 6 cap today