Today’s Daily Data Discussion will take a look at the best Class C multifamily caps we have in the database as of today. 

While we and many of the value oriented, emerging market multifamily investors we know favor B class multifamily assets, it would be easy in many markets to make a strong case for the acquisition and repositioning of a strong C class project.  As many of you have, we’ve look at Class C complexes that wouldn’t take much capital to reposition to a strong B, and we we’ve seen some with bullets in the bricks from the night before. 

It should be duly noted that cap rates are adjusting slowly in many markets and might not be as representative as they were 18 months ago; careful analysis of market and project fundamentals as always will yield the best picture of a project’s potential. 

Class C cap rates currently recorded in our database range from 10.7 to 5.6; the average is 8.3. 

Here are the highest Class C multifamily cap rates in the database as of today –

1. Jacksonville, FL  (10.7)
2. Syracuse, NY  (10.07)
3. Atlanta, GA  (10.5)
4. Greenville, SC  (10.5)
5. Beaumont, TX  (10.1)

Tomorrow we’ll take a look at the lowest Class C multifamily cap rates around. 

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