Multi-Family 5+

•5+ relates to the minimum of five (5) individual units within a property

•Units can be in either a single or multiple buildings
•Student housing is acceptable
•Tenants receiving Governmental assistance is acceptable
•Rent controlled properties are acceptable
•Properties are classified:

A

Referred to as ‘luxury' or ‘high end' by way of being newer construction (less than 10 to 15 years), having multiple tenant amenities, located in desirable locations, have excellent access to public transportation and related retail services
Most tenants are white collar and live in the units ‘by choice'
Parking is almost exclusively on-site

B

Properties constructed since the 1970's that may or may not meet current building code requirements related to structural integrity or construction materials (some properties may be older, but have upgraded mechanicals and fixtures)
Located normally in outlying urban or suburban areas
Generally very well maintained, just an ‘older' physical appearance
Parking is generally off-street with some urban locations have only on-street parking
Tenants range from blue collar to middle income with occupancy by choice or necessity

C

Older properties normally no older than 70 to 80 years (without any significant upgrades to mechanicals or physical structure)
Located typically in urban areas
Parking may be off-street, on-street or a mix
Tenants are typically ‘blue collar' to low to moderate income level
Rents are usually below market with a higher percentage of ‘long term' tenants or ‘new' renters

D

Typically older properties with heavy deferred maintenance in lower socio-economic areas with a higher percentage of tenants receiving governmental assistance

•Sub-property types:

Garden
Typically one (1) to two (2) story older complexes with common grounds within the property
Mid-Rise
Three (3) story to five (5) story buildings that can range from older construction to brand new construction of which the norm is for multiple amenities available to tenants (i.e. common laundry, on-site parking, etc.)
High-Rise
Anything over six (6) story construction with older properties from the 1970's through to new construction. Typically found in urban locales surrounded by other high-density housing, ease of access to shopping/dining with potential on-site amenities of on-site or underground parking, gym, in unit laundry, elevators, etc.
Townhouse/Condo
Typical of developers building ‘for sale units' that never sold and are now held as rentals

•Strongest property type in the commercial mortgage marketplace