I am seeing a lot of 90's-00's vintage assets hitting the market right now in Vegas at what seem (at least to me) to be very rich pricing and I am wondering who is buying the stuff. Personally, I have a hard time understanding how people are going to make any real money on a sub 5 cap in Vegas right now where I can't imagine rent is going to keep on growing.
Today I was looking at the book from a group raising equity for a sub 5 cap, 2005 construction MF asset, and they were projecting a 20%+over 5 years. Crazy to me.
Hoping to get the thoughts of someone with more knowledge than me on the subject.