First Maritime Post - NB Forum

[Roy N.]

Since we now have Provincial sub-forums on BP, I am going to suggest we collapse them as follows:

- Atlantic Canada

- Québec

- Ontario

- Prairies & the North

- British Columbia 

My argument for the collapse is there are not enough active BP members in the Maritime/Atlantic Provinces, Prairies and, certainly not, the Territories to warrant individual provincial/territorial forums.

[Roy N.]

@Gamble Li

Around here (Fredericton), the inventory on 6-10 unit buildings is pretty tight - though there are a couple for sale at the moment in a part of the City that is a little less desirable. I cannot tell you precisely what the current market CAP rate would be in that class of property - namely because I care little about CAP rate when underwriting - but sales of slightly larger buildings (15 - 30 units) have been down in the range of 5 - 6% over the past couple of years.

Nothing a small hike in interest rates wouldn't help.

Moncton is a little more varied. Around the Université you will see asks around 5 - 6% CAP, some of the older buildings a little further removed - or in the SW end - may be on the market for 6 - 8%. Again, the CAP is secondary when you are underwriting an acquisition - yes, it's helpful to know what others are paying for a cash flow, but I'm more concerned with what the rate of return will be on the deals I am pursuing.