Hi guys!
I am reading up on NYC multifamily market and unfortunately do not have access to paid databases.
I would greatly appreciate if someone could advise on what sort of cap rates you would observe in Harlem area right now?
Many thanks in advance!
| +45 | latest on Shorenstein? | 10 | 3h |
| +20 | Probability of S2 recap returning equity | 9 | 2d |
| +20 | To the veterans: What was institutional dev actually like during the last bull run? | 8 | 2d |
| +16 | Development vs. REPE pay gap | 8 | 3d |
| +15 | PGIM Real Estate Equity Opinions? | 10 | 1d |
| +14 | How do I break into a family office role | 3 | 1d |
| +13 | PGIM RE vs. Eastdil Secured | 5 | 1d |
| +12 | MBA Pipelines for REPE | 10 | 1d |
| +12 | Reneging - What should I do? | 5 | 3d |
| +12 | Opportunistic Equity Acquisition Associate Role - Middle Market REPE | 1 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Cap Rates are high.... There is typically a 30-40 percent chance you get capped in Harlem at anytime. Take your money elsewhere.
I see things that trade around 4%. This is very dependent on numerous variables, especially if the building is subject to stabilization or rent control.
Appreciate the responses guys.
To be more specific Im looking at class B properties with 15-30 units, say all rent stabilized
Given that 30-40% chance mentioned by Mark, I thought caps would be somewhat higher than 4%, haha
where in Harlem and what side?
Also value-add which is what Rent Regulated buildings have become are trading to at the price of the npv sale price in 5-10 years minus a developer return, minus renovation cost.
I wish they traded at higher than 4 caps. The truth is rent stabilized buildings don't carry much risk so why would they be trading at a higher cap, except that they are old stock. But then again nyc is supply constrained.
Less risk and a lot of upside if you are good at evicting rent stabilized tenants. Probably not the most fulfilling job in the world but I know guys that make a killing doing that.
would put the cap rates between 4 and 5%, but the real money is in the price appreciation rather than the rent roll. IRR should be 12% plus.
Quia nobis nihil necessitatibus provident nobis. Accusantium debitis voluptate voluptatum minus reiciendis voluptates. In rerum quod aut repellendus cupiditate autem. Autem sapiente occaecati et et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...