What is a good cap rate for a 37 unit 4 story building with no retail on Lond Island, New York?

In Buying Property - Asked by Lisa T. - Sep 17, 2009
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Answer(s)

Mick D.
Owner/Investor
Punxsutawney, PA

A good Capitalization Rate for Long Island would be 8.5% to 9%
Your NOI should be adjustable upwards without too much difficulty
with existing renters

Sep 17, 2009
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Erika B.
Broker/Agent
San Francisco, CA

A good cap rate depends upon what the buyer has to invest in the property, whether he is in an acquisition or holding phase and the tenant profile plus vacancy factor in the building. If you can improve the market rents you will raise your NOI and your cap. The lower the cap, generally the more deposit is required. a Good average rule of thumb is to go for 8.5% to 9% though a lower cap rate should not dissuade you from investigating the property further.

Sep 18, 2009
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Joshua S.
Broker/Agent
New York, NY

It really depends where it is, the strength of the tenancy and the upside potential. I have alot of experience in the NYC metro market. Give me a call 212-244-4242. Best of luck.
Josh Schwab
Chambre & Company, Inc.

Oct 16, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

A 9% cap would be fair.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Oct 23, 2009
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