Class A/B/C is an informal LA multifamily building classification based on age, amenities, condition, and tenant profile. Class A is newer and higher-end; Class C is older, value-add-oriented, with working-class tenant base.
Not a formal designation — but widely used in LA multifamily underwriting:
Most LA multifamily under RSO is technically Class B or C — the regulatory constraint is the defining investment characteristic, not the age/quality alone. A 1965 Koreatown building might be Class C on age but have stabilized Class B economics. Classification matters less than regime + rent roll.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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