Hey Guys, what's a normal cap rate for Brand new class B apartments in Garden city around 43rd street and Chinden? Thanks!
I'm looking to connect with Boise Multifamily developers, brokers, multifamily experts, MF builders, entitlement specialists, etc.
FWIW Tanner, over the last year or two I have checked out a few Class B apartments being built up along State Road maybe a mile away to the NW towards Eagle. Cookie cutter with pretty sloppy finishes from what we could tell - slapped together. Their offered pro formas had 6-7.5% cap rates if I am remembering correctly, but the assumptions were laughable.
This is not my area of expertise but I would say you'd likely be looking in the 3.5-4.5% range. I'd be interested to hear what others have to say.
Thanks. I would expect somewhere between 4.5 and 5% for new construction, but that's just an educated guess.