Class-B Apartment Investments Are Driving Multifamily Sales, Report Shows

Class B Apartments

Class-B apartment sales powered investment activity this year, and experts say we shouldn’t expect next year to be any different.

Berkadia’s latest National Trends report found that total apartment sales in 2016 were up 9% from the previous year, largely powered by Class-B sales—which rose 20% for the year, GlobeSt reports.

The report says the supply of Class-A properties has largely been exhausted, and as rents continue to rise disproportionately in premium locations, many investors see Class-B units as a safer bet. The average price for Class-B properties jumped 11% to more than $125k this year, while cap rates fell 20 bps. [GS]

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