Cap Rate - Cincinnati Multifamily

[Kyle Neff]

Hi BP Community,

Anyone in the Cincinnati, OH market multifamily space that can comment on Cap Rates you are seeing (purchase and exit) in the 100-150 unit range? Specifically looking in the NE Cincinnati sub-market. Thanks!

[Joseph Cornwell]

@Kyle Neff

On my recent apartment deals I have represented, we are seeing a range of 6-9% cap rates depending on location and condition of course. Some of the larger brokers are projecting cap rates compressing into the 5% on future exits but I am less optimistic. If you are in a decent blue collar area you should be finding deals trading in the 6.5-8% range still. Some of the roughest areas I have seen 10%+ still but those need full turns typically or have a lot of vacancy. Saying NE, I am picturing Mason, Lebanon, Kings, Etc. If that is the case your are probably looking around 6-7% as a ballpark. If you have any specific questions feel free to reach out, thanks!