Class-A is nice if you can get it, but investors are increasingly turning to B and C apartments in the Phoenix market, both for straight returns and as value-adds, Colliers International in Greater Phoenix EVP Trevor Koskovich tells us.

On the lower-quality assets, they typically plan to run them as investments in pursuit of cash flow, he says. On the nicer C quality assets, they'll be looking to add value along the way to improve cash flows. Trevor's snapped with colleagues Bill Hahn and Jeff Sherman.

Recently Trevor, Bill and Jeff repped the buyer and the seller—an L.A. LLC and a Miami Beach LLC, respectively—in the trade of the 468-unit, Class-C Willow Springs Apartments in Phoenix for more than $13M. Built in 1986, the property consists of 14 three-story buildings on 13 acres.

Renovation can make Class-B very competitive with Class-A. Recently ABI Multifamily senior managing partner Alon Shnitzer was one of the lead brokers in the sale of the 144-unit West 35th Apartments in North Phoenix, an '80s vintage property that was significantly renovated in 2011 and '12. "The combination of the renovation—which totaled about $1M—and the availability of low interest rates made the buyer's purchasing decision easy," he says.

The property fetched $8.8M in the sale to a private buyer. The renovations involved all of the common areas, as well as 30% of the unit interiors. One new installation to the property is a glass pool fence, which Alon says is a design feature he's never seen even in new Class-A properties in Phoenix.