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

In Selling Property - Asked by Hannah P. - Jun 21, 2013
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Patrick K.
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
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sean g.
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
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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

Jul 1, 2013
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Linda C.
Upland, CA

Agree with Sean g. 5-8%

Jul 8, 2013
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