Class A
Covering the highest quality buildings per market and area, this class encompasses properties that are typically less than 15 years old, professionally managed, located in desirable neighborhoods, and feature top amenities. Tenants are usually high-income earning, and vacancy rates are low.
Class B
Buildings in this class are usually well maintained, but may have lower-income tenants or deferred maintenance issues. However, Class B properties can be relatively easily upgraded through renovations or common area improvements, making them a desirable “value-add” opportunity for real estate investors.
Class C
Typically over 20 years old, Class C buildings are usually in need of renovations and infrastructure improvements, and are most often located in less desirable areas. Consequently, their rental rates tend to be the lowest in their market.
Based in Salem, Oregon, Paul Kerley oversees a portfolio of over 1,000 units, primarily in the B and C classes of property assets.