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