What is the cap rate for a 7-unit apartment in Hawthorne, CA?

In Selling Property - Asked by Hannah P. - Jun 21, 2013
Report Abuse
Answer this Question

Answer(s)

Patrick K.
Broker/Agent
Cypress, TX

It could be a 3 or it could be a 15. Disclose for us your role in the transaction. Have you had a commercial RE professional underwrite or review the financials? If you have a complete profit and loss statement including vacancy the CAP rate will be apparent.

Jun 22, 2013
Report Abuse
sean g.
Broker/Agent
Manhattan Beach, CA

Depending on specifics with location, unit mix, unit conditions and other factors......5.0%-8.0% is a good ball park range.

Jul 1, 2013
Report Abuse
Anthony C.
Santa Barbara, CA

I agree with Sean G. I'd say the cap rate range for a 7-unit multi-res property in Hawthorne is between 5.0 and 7.0%. For a property to have a 7-8.0% cap rate, it would likely have a higher level of risk in the stability and outlook for the rent roll and/or uncertainty regarding the operating expenses.
YTD 2013 has seen some compression of cap rates so be sure to evaluate whether you need to adjust your cap rate for a prospective valuation.
Anthony S. Cangelosi
www.tedescovaluation.com

Jul 1, 2013
Report Abuse
Linda C.
Broker/Agent
Upland, CA

Agree with Sean g. 5-8%

Jul 8, 2013
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question