Cap rates for properties occupied by high-quality tenants, such as 7-Eleven, have achieved cap rates between high 4 percent and low 5 percent in the fourth quarter of 2017.
The competition between mezzanine lenders is keeping interest rates relatively low for mezzanine loans, even though short-term interest rates overall are rising.
Fannie Mae and Freddie Mac have both announced programs that provide long-term financing at competitive interest rates to help investors refinance and acquire SFR properties.