Quote:
Originally Posted by Robert.hampton
Go on loopnet and find me a single investment property going for under 5% cap rate in Denver. Most properties at the 5% range are newly renovated -- older properties tend to get you in the 7-8% range. And that's in Denver's current 'hot' market. You used to be able to get in the 10% range no problem.
You're welcome for introducing you to the world of real estate investing. I guess these office tower investors you know must be a bunch of noobs.
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Loopnet?! Haha..sub 5 cap rate deals don't go on loopnet. That said, lots of small 1031 deals happen sub 5 for small properties, ground leases with fast food chains routinely trade around 5 or below, NNN single tenant structures trade around there too. My company just did a 1031 at a 2 cap because a 2 is better than paying the man. However, for large scale property, sub 5 is laughable. The closest large scale property we have in Denver is probably the triangle building and the two DUS wing buildings and they didn't break 5 even at $700+ PSF.