Looking at a few parks in AZ and the listed cap rates are in at around 8-9%… And these are parks that either are POH or mix of Tenant and MOH - am I just encountering out of touch sellers or have the cap rates in big city parks like PHX gone down?
From dealing with buyers there is a good possibility that there are MORE buyers than sellers presently thus sellers with exceptional properties why not 8 or 9 caps like apartments. When we have lots of NEW buyers and really no new parks developed guess what happenings especially to the buyers when they bought with a 10 cap or higher they are very happy. Since the ma and pa parks owners are nearly extinct we are seeing the beginnings of a battle perhaps with multi-park owners and they will not sell for less than 11 cap unless it is a problem property which they will seldom buy thus leaving the less than 40 space properties to the beginners and they hope there are more beginners when they want to sell otherwise the multi-park owner are not interested in them unless a very high cap. Times are changing and those higher up on the food chain are smiling.