Looking for info on cap rates for New London CT

[Robert Lindsley]

Hi there,

I am trying to refi one of my apartment buildings in Norwich, CT.  The building is a 4-unit apartment building with 2 small office spaces. 

As part of the refi process I ordered an appraisal for the property.  Based on the comps obtained the value for the property came back very low.  When I read his report I saw he was using an ultra-conservative cap rate of 12.2%!  One of the issues is that it's been difficult to find comps for this building based on the area but I was honestly gobsmacked when I saw such an awful cap rate.

Now I'm trying to find information to convince the appraiser to move the cap rate so I can get a better (and hopefully more realistic) appraisal value.

Does anybody have information on the Norwich/New London CT area and has a good understanding of the cap rates in that area?  If so I'd love to chat with you for a couple of minutes to get your thoughts.  I'd be happy to share the appraisal if that would help.

Thanks!
Robert.

[Jaysen Medhurst]

10-12% Cap Rates in Norwich and New London sounds about right, @Robert Lindsley. Groton, Waterford, Stonington will all be lower. Based on conversations with lenders and brokers as well as knowledge from specific deals, we're seeing 8-9.5% in Groton, 5-8% in Stonington. 8-9% in East Lyme.

Feel free to PM me, if you want to chat.