NYC Multifamily Cap Rates
We are U/W exits 5.25% in some of the best zipcodes in the city with 3-5 year hold periods. Is this too bearish?
We are U/W exits 5.25% in some of the best zipcodes in the city with 3-5 year hold periods. Is this too bearish?
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How are you doing deals exiting at 5.25? I havent look at deals in nyc in awhile, but I'm pretty sure I've heard about a couple recent trades at ~4%
We are not doing much atm. Only looking at significantly discounted and distressed value add projects. T bills are 4.5% risk free right now
Could you explain the exit cap and risk free rate? You're basically saying that these are distressed Class A assets you will renovate/bring up occupancy rent whatever and are looking to sell at a 5.25% because you need some spread between that and the risk free rate on treasury's aka a very safe return and due to the risk of you strategy you need some buffer (always some premium above RFR in general).
When you say best zip codes, do you mean up-and-coming? We're doing very strong in Bushwick 11237. No rent-stabilized.
5.25% sounds about right. NYC caps today are not the lowest...
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