Multifamily Property Classes in Commercial Real Estate

What Are Multifamily Property Classes in Commercial Real Estate? 

Much like office properties are classified by quality as either "A", "B", or "C" properties, multifamily properties such as apartments can also be classified this way. However, unlike office buildings, multifamily properties are often classified from "A" through "D." 

Class A Multifamily Properties

  • Usually 10 years old or less, may be older (but if so, will have been significantly renovated or located in a very desirable area) 
  • Well-designed landscaping, well-finished rental office
  • Top-quality amenities, potentially including pools, gyms, saunas, or cafes 
  • Top-quality construction, best materials 

Class B Multifamily Properties

  • Usually 20 years old or less 
  • Good construction quality, average to above-average construction materials 
  • Slightly dated appearance, amenities no longer top-of-class 

Class C Multifamily Properties

  • Usually 30 years old or less
  • Dated appearance, dated amenities
  • Medium-quality construction, little (if any) significant rehabilitation work completed 
  • Appliances may not have been updated since original construction 

Class D Multifamily Properties

  • Usually more than 30 years old 
  • Often located in less desirable areas 
  • Medium-to-poor quality construction and materials 
  • Little to no amenities 
  • Property may be significantly worn due to high turnover 

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