Class A vs. Workforce and Affordable Housing

[Jason Merchey]

I'm considering passively investing in new Class A apartments, 1,000 units, $230m, in Tampa, Daytona Beach, and Dallas, 

OR

A fund that is just getting started that focuses on light-value-add Class B and C, with a goal of up to 50 complexes, maybe about a billion dollars of total value. I hear from that sponsor that with the covid and post-covid economies, Class A should be a "steady Eddie" with plenty of white collar types who can work from home.

Let's assume the operators are solid, and the metro's are solid. 

I'm wondering if Class A is a good bet or a poor one. I also hear from the WFAH sponsor that this is a great strategy that has significant tail winds.

Trying to balance out my Class B value add plays I am involved in at this time.