CAP Rates on Commercial Properties in Mariemont/Fairfax

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CAP Rates on Commercial Properties in Mariemont/Fairfax

Jake Walroth
Investor · Cincinnati, OH · Member since 2016 · 208 posts · 157 votes

Hey local BPers.... up until this point my investments have been SFH and Small Multis(1-4), and I've started looking at commercial properties and was wondering if anyone knows where CAP RATES are trading at in Mariemont/Fairfax? I'm meeting with the owners of a property next week and would like to do my own rough evaluation prior... thanks in advance.

Jake 

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  • Antoine Martel
    Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    9y

    I'd recommend checking out some comps that have recently sold. These comps will show you the cap rates for the type of building you are interested in buying. You can also reach out or call local commercial brokers and ask them their thoughts. 

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  • Dan Wallace
    Golden, CO · Member since 2016 · 145 posts · 61 votes
    9y

    One other thought would be to call a few commercial appraisers. They sometimes like to share information and much of their commercial work revolves around justifying market CAP rates.

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  • John Lenhart
    Rental Property Investor · Cincinnati, OH · Member since 2017 · 258 posts · 207 votes
    9y

    @Jake Walroth your question is a bit vague, it depends on what type of property you were actually buying. For example, the Merrimont inn is going to trade at a much different cap rate than  The office space immediately behind it. And that will train in a different Then the chipotle down the street or the laundromat in Fairfax. The industrial property in Fairfax trades had a different rate than the retail and MarieMont. Without more specifics it's kind a hard to place an appropriate cap rate on the property

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  • Jake Walroth
    OP
    Investor · Cincinnati, OH · Member since 2016 · 208 posts · 157 votes
    9y

    @John Lenhart it's a 10 unit apartment building. It's quite literally on the border of Fairfax and Mariemont just off Wooster pike. 

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  • John Lenhart
    Rental Property Investor · Cincinnati, OH · Member since 2017 · 258 posts · 207 votes
    9y

    @Jake Walroth the thing with mariemont is that you are getting a 70 year old building with a boiler system most likely. You typically get a or b class tenant who want to live in a charming neighborhood. Therefore the price is a bit challenging. I would want an 8 cap min for a solid investment given the building is old and more expensive to upkeep, but it is likely the prices will not be that competitive in that neighborhood. You have a lot of doctors and lawyers who buy places for tax loss in thAt area so prices may be a little high. 

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Yeah I have many commercial clients that are doctors. Lawyers I have seen make about 200k to 300k a year. Some docs pull 500k into over 1 million a year for some surgeons.

    They do not need the money today and are looking for high quality assets with minimum yield and safer.

    Something like a Starbucks, T-mobile, and Aspen Dental 3 top at 6.5 to 6.75 cap and 4 million with 1 million down etc. is a flavor they tend to like to buy. 

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  • Brent Blum
    Investor · San Diego, CA · Member since 2017 · 28 posts · 11 votes
    8y

    @Jake Walroth , how'd it go, did you lock it down?  :-)

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