Relationship between Cap Rate and Price/Unit

[Matthew Shay]

Can anyone comment on the relationship between cap rate and price per unit? I would think the higher the cap rate the lower the price/unit. I am looking at the 2019 forecast in the Berkadia Report and it is showing a POSITIVE relationship between those two variables. What am I missing?

[Robert C.]

@Matthew Shay, I'm trying to think of a good reason why you would care to correlate the two and I can't really think of one. I feel like they put that chart in their report just to have another chart to put in the report. They are both quick ways to compare opportunities within the same market, but trying to track a relationship seems... not useful at all.