In today's world, probably 5.0%-5.5%. What's the hold period? I don't typically invest in Class A but if I did I would have a lower exit than Class B/C which I would underwrite at 6.0%+ in KC/OH. Boise is tough to say...

 

Big Oof on timing given the uncertainty in the market today...

I would look at where cap rates are today for like-kind product in the same metro and nearby metros (to index). If these markets trade at a discount to Sunbelt and West Coast markets, then keep that same discount for this new product.

I would expand current cap rates at least 50-75 bps further

 

Cap rates have remained relatively sticky in our secondary Midwest market (maybe 25-50 bps jump so call it a 5% cap rate). Big question is long-term debt rates. Hard to cap rates staying in the high 4%'s / low 5%'s if debt rates are 6%+.

 

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