Cervenka & Lukes Capital Partners is a lending and investment firm that aims to provide its investors with superior yields through selective bridge debt investment capital. In addition to providing bridge loans to qualifying parties, Cervenka & Lukes Capital Partners maintains a portfolio comprised of multiple types of real estate, including multifamily housing properties.
When distinguishing between types of multifamily housing properties, professionals within the real estate industry will refer to a building as belonging to one of several asset classes, A through D. This label communicates factors like the age, location, and rent value of the building, along with the characteristics of the tenants who may typically live there.
For example, a building that earns a Class A designation will be one that qualifies as a top-tier property. Class A buildings are built in desirable neighborhoods, tend to be less than 10 to 15 years old, and feature cutting-edge amenities to attract tenants with higher incomes. Comparatively, Class B properties tend be a little older than those in Class A and are home to tenants in a lower income bracket. While still located in reasonably safe neighborhoods and boasting quality construction, Class B housing will have more dated amenities and appeal to tenants whose salaries put them in a median income bracket.
Class C properties are those that are 30 years old or more and which primarily cater to members of the working class. These buildings are often in need of renovation and require frequent maintenance repairs. The exteriors of these buildings may be outdated, and amenities are few, if any.
