Are Cap Rates Overrated?
Stuyvesant Town and Peter Cooper Village, a 11,232 unit apartment property on 80 acres in Manhattan sold last week to Tishman Speyer Properties and BlackRock Realty Advisors for $5.4 Billion.
Gossip at ULI noted that in-place net operating income is just a little north of $110M with a close set for mid November. The property's tenants bid $4.5B, one of twelve bids for the property.
These are the guys building the Infinity condominium project in SOMA here in SF--the first 656 of a total 1400 units in four towers are going up now.
This puts the going in cap rate at just over 2. Obviously someone with a lot of money [and more successful than your host] feels that cap rates are overrated...
