who gives the A,B or C designation to buildings?

In Buying Property - Asked by lilian s. - Feb 25, 2017
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Answer(s)

Juanita A.
Broker/Agent
Hallandale, FL

Hello,
These designations are just a shortcut to give a general idea of the condition and features that can be expected of a property. Usually, listing agents or owners will label the property but the buyer/tenant must research and visit the unit to have their own opinion. A property that is class B for a seller may look more like a C for a buyer :)

Feb 27, 2017
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Georgie C.
Broker/Agent
Portland, OR

Hello Lilian -
Great question. You may find this information helpful if you're looking through the lens of an apartment buyer:
Class A Multifamily
Generally, garden product built within the last 10 years
Properties with a physical age greater than 10 years but have been substantially renovated
High-rise product in select Central Business District may be over 20 years old
Commands rents within the range of Class “A” rents in the submarket
Well merchandised with landscaping, attractive rental office and/or club building
High-end exterior and interior amenities as dictated by other Class “A” products in the market
High quality construction with highest quality materials
Class B Multifamily
Generally, product built within the last 20 years
Exterior and interior amenity package is dated and less than what is offered by properties in the high end of the market
Good quality construction with little deferred maintenance
Commands rents within the range of Class “B” rents in the submarket
Class C Multifamily
Generally, product built within the last 30 years
Limited, dated exterior and interior amenity package
Improvements show some age and deferred maintenance
Commands rents below Class “B” rents in submarket
Majority of appliances are “original"
Class D Multifamily
Generally, product over 30 years old, worn properties, operationally more transient, situated in fringe or mediocre locations
Shorter remaining economic lives for the system components
No amenity package offered
Marginal construction quality and condition
Lower side of the market unit rent range, coupled with intensive use of the property (turnover and density of use) combine to constrain budget for operations

Feb 27, 2017
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