10 Year Lease Near By University - Eastern NC 8 Duplexes, 64 bedrooms

[Ryan Moyle]

Hey everyone. I am a full-time wholesaler in Eastern NC. I'm looking at a deal that is pretty unique for our team and trying to gauge where an investor would want to be for this type of transaction before we take it on. It's 8 duplexes that have a 10 year lease with a nearby university, built in 2018/19. Income for year 1, starting in March, is $364,800. After taxes, insurance, HOA, NOI is $324,259.19. The university pays all other expenses. The deal was originally offered to me at 5,885,000 which would be a 5.51% cap rate. The universities agreement is to increase rents by 2.5 each year for the next 10 years

Again, this is a pretty unique deal for us. Most the deals we move are at a much higher cap rate, but are olders builds, more beat up. Do any investors have experience with this type of deal? And for something this new, what cap rate do y'all typically look for?