Class B Real Estate

Properties that are older than their Class A counterparts and tend to generate average market rent. Class B properties may or may not be professionally managed. Class B buildings may have deferred maintenance issues. Value-add investors often view these properties as investment opportunities because the properties can potentially be upgraded to Class A through renovations and improvements to common areas. Buyers are generally able to acquire these properties at a higher Cap Rate than a comparable Class A property because these properties are viewed as riskier than Class A.