Value Increase of Building

[Michael Cole]

I’ve been renovating a 16 unit apartment in Pittsburgh for the past 6 months and things are going well. I’m renovating individual units (kitchen/bath/flooring/some painting) and I’m able to increase rents $150-$300 per unit. Additionally I put in 2 new retaining walls, painted the entire inside common area, new carpets, added a small gym, and put up nice artwork (essentially it looks like a brand new building)

My question is about cap rates......I know cap rates are based on the area and general economic conditions. The cap rate of my place is roughly 9-10% based on initial NOI and appraisal. Would these general renos further reduce the cap rate of this building independent of macro economic conditions and the local area?