© 2018 - 2019 by Ferndale Realty. Equal Housing Opportunity. By Searching, you agree to the end user agreement. Find homes for sale in Minnesota. Principal Broker - 203 Mississippi Street Northeast, Minneapolis, Minnesota 55432. A proud veteran owned business.Specializing in Commercial and Residential real estate in Andover, Coon Rapids, Blaine, Fridley, New hope, Brooklyn Park, Brooklyn Center, Saint Cloud, Sartell, Minneapolis, North Loop, Saint Paul, Uptown, Bloomington, Maple Grove, Wayzata, Plymouth, Shoreview, West Saint Paul, Mendota Heights, Eagan, Burnsville, Apple Valley, Savage, Mound, Norwood Young America, White Bear Lake, Woodbury, Cottage Grove, North Saint Paul, South Saint Paul, Highland, Orono, Stillwater, Hastings, Cannon Falls, Jordan, Inver Grove Heights, Saint Louis Park, Edina, Oak Park Heights, Duluth, Eden Prairie, Richfield, Maplewood, Oakdale,  Roseville, Brainerd,  Nisswa, Breezy Point, Grand Rapids, Rochester, Pine Island, Lake City, Albert Lea.

  • Instagram - White Circle
  • Facebook - White Circle
eho.png
Please reload

Recent Posts

Home Buying in a Hot Market

July 12, 2018

1/3
Please reload

Featured Posts

Multi-Family Classifications

June 16, 2018

If you are in the market for multi-family housing, something to keep in mind is the investment classification of the RE you are interested in purchasing. After a quick google search, I found this classification scale from a financial loan company. This was prompted by a conversation I had with an agent in Ohio. I had heard office and retail space referred to with classes but never MUF. This makes sense and something to keep in mind. Pretty universal items to note:

 

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

     

     

Share on Facebook
Share on Twitter
Please reload

Follow Us