The decline in energy prices seems to have had very little impact on the Class-B market, Berkadia’s Chip Nash, Greg Austin, Wade Schmitz and (not pictured) Bob Heard tell us. City-wide, those assets are the most sought after today. Take Crystal Falls, a 165-unit multifamily community that the team just traded from one Californian investor to another. It’s a value-add play for new owner Bear Valley Delaware Crystal Falls; it’ll upgrade the interiors. Seller Emerge Crystal Falls had simply reached the end of its short-term investment timeline. The deal included a loan assumption with very little maturity left on it, which caused the closing process to draw out for several months.

Here's Crystal Falls, which was built in 1984 and was 96% occupied at time of sale. The community doesn't have many peers in its submarket, so it's been able to maintain a very high occupancy year-round. There's very little new competition being created for the Class-B properties, the Berkadia quartet tell us, which means the outlook for continued rent growth and stable occupancy is very good.