Core multifamily is stabilized, well-located, institutional-quality property with reliable cash flow and minimal value-add work needed. Trades at the tightest cap rates in any submarket.
Core properties: post-1995 construction (typically), Class A or high Class B, 95%+ occupancy, clean rent roll, documented capital condition, premium or strong demographics. Buyers of core pay for stability and long-hold characteristics.
Core-Plus is a variant with some (typically modest) value-add opportunity on top of core fundamentals — a bridge between core and true value-add.
LA core multifamily cap rates Q1 2026: 3.5-4.5% on Westside, 4-4.8% in core LA City mid-city submarkets on post-1995. Institutional buyer pool dominates. Most patient capital. Least sensitive to cycle timing.
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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