BTR cap rates in San Antonio

Based on the most helpful WSO content, here are some insights related to cap rates and yields:

1. Cap Rates and Yields:

   • Stabilized Yield: In the context of Tides Equities, a stabilized yield of around 3.72% was mentioned.
   • Terminal Cap Rate: An exit or terminal cap rate of 5.10% was underwritten, but there were concerns it might trade closer to 5.50% - 6.00% today.

2. Market Conditions:

   • Seismic Shifts in Costs: There are ongoing seismic shifts in property tax and insurance costs in Texas, which could be up as much as 25% - 50% year-over-year, posing a major headwind for NOI (Net Operating Income).

3. General Trends:

   • Cap Rate Compression: There is a trend of cap rate compression due to the amount of dry powder in the market, which affects transaction prices and return metrics (IRRs).

For specific BTR (Build-to-Rent) cap rates in San Antonio, it would be prudent to consider these general trends and adjust for local market conditions. However, exact figures for BTR in San Antonio are not provided in the knowledge base.

Sources: Tides Equities?, Tides Equities?, Cap Rate expansion in multifamily/development?, Are cap rates still compressing?, Who is buying this stuff? Brokers and PE analyst/associates