Current Capitalization Rates

[Adam R.]

With the increase in interest rates, looming recession, and drop in asset values generally, at what are the cap rates that folks are you purchasing? Is 10% still the magic number or are folks willing to buy at a lower cap rate (or higher rate)?     

[Cory H.]

We're more concerned with the return the park will generate than the cap rate going in. For us the cap rate is more useful in estimating the future value based on where we can take the NOI.

That said, the higher interest rates are definitely making things trickier.  Seems like everyone still wants the same price they could have gotten when rates were less than half of what they are now.  Seller financing--with the right terms--can certainly help boost our offer prices...