Cap Rate relationship with interest rate

[Carlos Ptriawan]

This question is mostly for syndicators or those who would like to think about it. I think it was 'not that difficult' for GP in pre-2021 if you purchase Apartment complex with a cap rate of 5% and interest rate of around 3%. But what happens in today's market, in case it's Class A core multifamily in SF for example where cap rate is already sub 3%, but the available interest rate loan is now between 6-7% ( so rate is twice than cap rate). I don't think a bank will lend you with 70% LTV. Perhaps 50% LTV will do. Having said that:
- what would GP will do for Class A market in already highly appreciated market in 2% cap rate city?
- what would be the exit way? selling to DST?
- is there such thing where MF appreciation will have a limit due to the interest rate factor ?
- is the bank have intricate specifications on what numbers they will accept before accepting MF loan ? (such as loan with 6% rate shall have 40% LTV and such ?)