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Apartment investors are taking a cautious approach and watching day-to-day rate fluctuations as they price new deals.

Eastham Capital has been circling a bank-owned property in the Midwest for a little while now, according to founder and managing partner Matt Rosenthal. The company has done due diligence, but rates are up 75 basis points since it signed the contract.

However, despite the potential Rosenthal sees in the asset, the Boca Raton, Florida-based apartment owner isn’t ready to take over the apartment community quite yet. 

“We’re not going to do it unless we can get a little bit of a retrade,” Rosenthal said. “We’re not going to cover the increased interest expense from contract signing to the deal.