The CEO and chairman of Springbank Capital Advisors LLC in Chicago, David Trandel leverages more than three decades of experience in investment banking, capital markets, and securities to oversee the development and acquisition of real estate. Under David Trandel’s leadership, the Chicago-based company owns and is developing more than $700 million of Class A real estate.
Most investment properties are divided into three classes: A, B, and C.
Class A encompasses properties that are of the highest quality in the market. These properties have been built within the past 15 years and feature top amenities, such as bike storage, an on-site restaurant, or valet parking. The tenants within a Class A property are often high-earning and capable of paying some of the highest rent prices in the area.
Buildings older than Class A properties are often labeled Class B. Tenants within these buildings have a lower income, and as a result, rent prices are also lower. Although most Class B buildings are well maintained, they have some maintenance issues that must be addressed. Investors may be drawn to a Class B property because its value can be increased with renovations and improvements to the common area.
Finally, Class C properties are over 20 years old and are located in areas that are less desirable. Before these properties can generate good cash flow, they often require major renovations that may involve updating the building infrastructure. Due to the age and location of Class C properties, they command the lowest rental rates within a market.
