Does More Units = Smaller Cap Rate?

[Jonathan Johnson]

Hello BP,

I was wondering when looking at larger apartment buildings and neighborhoods, when you get to 100+ units does the cap rate go down? I just looked at a 200+ unit apartment area for sale with a 7.5% cap rate, but I don't know if that's good. Obviously there's a lot of factors to consider, but these apartments are 96% occupied and are in pretty great condition in a B neighborhood.