For nearly a decade, GHC built its multifamily track record the hard way: by acquiring, renovating, and operating Class C housing across Ohio’s most supply-constrained neighborhoods. That discipline, hands-on operations, rent-ready renovations, tight expense control, produced results in a segment known for volatility.

But the market is shifting. And so are we.

After 7+ years of outperformance in Class C, GHC is executing the next chapter of our multifamily thesis: a strategic expansion into high-quality Class B and B+ assets.
This is not a trend-driven pivot. It’s a timing-driven opportunity grounded in fundamentals, replacement costs, and demographic resilience.

Below is a look at the “why,” “why now,” and “what it means” for investors, communities, and the future of multifamily.

A Rare Window Created by Market Imbalance

1. Class B Is the Most Durable Segment Through Cycles

Across downturns, Class B has repeatedly shown the strongest combination of:

• Persistent occupancy
• Stable tenant profiles
• Predictable rent growth

Class A softens first during oversupply.
Class C is more exposed to financial shocks and deferred maintenance risk.
Class B sits in the middle; stable, service-oriented, and chronically undersupplied.

According to CBRE data, Class B assets have maintained higher occupancy than Class A in 14 of the past 16 years, even in markets with rising supply.

2. Replacement Costs Have Disconnected From Asset Pricing

Construction inflation, materials volatility, and financing costs have pushed new development nearly out of reach. In many Midwest markets, Class B trades at 40-60% below replacement cost, creating a structural pricing disconnect.

This gap is unlikely to close soon; labor shortages, insurance pressures, and debt costs will continue to limit new deliveries.

When you can buy newer, renovated, stabilized assets at massive discounts to replacement?
That’s the moment sophisticated operators move.

3. Migration + Affordability Are Making Class B the “New A”

Post-pandemic mobility reshaped demand:

• Young professionals priced out of Class A
• Remote-flex workers seeking affordability
• Retirees relocating to lower-cost metros
• Essential workers requiring renovated but attainable housing

Class B is now absorbing the demand that used to flow toward new luxury stock. Since 2020, Class B rent growth has outpaced Class A by nearly 150 bps nationally, per RealPage.

Why GHC Is Leaning Into Class B Now

1. Our Operating Platform Is Built for This

GHC’s roots in Class C forced us to master:

• Renovations
• Turnaround operations
• Resident experience balancing
• Workforce housing management
• Cost discipline

That platform becomes even more powerful in Class B, where assets are newer, systems are replaced, and improvements drive immediate NOI instead of deferred capital headaches.

We can apply our same discipline without the same level of physical distress risk.

2. The Best Opportunities Emerge When Capital Pulls Back

Institutional investors slowed acquisitions dramatically from 2023-2024.
But renters didn’t.

Where institutions paused, GHC stepped into the gap.

This is the moment when private, regional, operationally deep firms can buy institutional-quality assets at non-institutional prices.

3. Timing Matters: We Are Entering When Others Are Exiting

Interest rates remain elevated, but the broader cost of waiting is steep:

• Insurance premiums rising double digits
• Construction inflation compounding
• New supply slowing into 2026-2027
• Cap rates stabilizing
• Distress emerging in over-leveraged Sun Belt Class A deals

We see 2025-2027 as the window when sharp operators can assemble a strong Class B portfolio before the next development wave hits.

GHC’s Class B Thesis

Our thesis is built on three simple beliefs.

1. Rent Spreads Will Continue to Compress

The premium between Class A and Class B is shrinking.
That creates upward pressure on Class B rents with limited risk of over-luxury supply.

2. CapEx Risk Is Lower and More Predictable

Unlike Class C, where hidden issues often sit behind every wall, Class B assets built after 2000 tend to have:

• Updated systems
• Modern floorplans
• Better insulation and mechanicals
• Stronger community amenities

This creates more predictable CapEx cycles, aligning with long-term investor durability.

3. Ohio Is Entering Its Strongest Demographic Cycle in 30+ Years

Intel. Honda/LG EV. CHIPS Act. Airport redevelopments. Riverfront transformations.
Billions in catalysts mean one thing:

New jobs = new renters.

And those workers overwhelmingly choose Class B when they relocate.

What This Means for GHC Investors

This shift positions our multifamily vertical to deliver:

More Stable Cash Flow

Class B occupancy levels remain resilient; often 94-97% in stable Midwest metros.

More Defensive Returns

Lower CapEx surprises, with modern systems and recent renovations.

Better Long-Term Appreciation

Buying below replacement cost with demographic tailwinds creates natural upside.

Portfolio Quality Expansion

We retain our operational edge, but with assets that offer stronger durability and institutional profiles.

Why Cleveland and Akron Are at the Center of This Strategy

Ohio is no longer a “flyover” market, it’s becoming one of the strongest job-growth corridors in the country.

• Intel’s $28B fabs
• Honda/LG’s $4.4B EV facility
• Cleveland’s biomedical and healthcare cluster
• Akron’s polymer and materials renaissance
• Shifts in remote-flex worker migration
• Major infrastructure upgrades across Northeast Ohio

These macro drivers generate renter demand across the exact demographic Class B serves.

For GHC, leaning into Class B is both a market opportunity and a logical progression of our platform.

The Road Ahead

Our Class B thesis reflects three guiding truths:

1. You can’t time the market, but you can time supply and replacement cost cycles.
2. Strong operators outperform in the middle of the market, not the edges.
3. Durability beats velocity, especially in real estate.

GHC is entering this next chapter from a position of strength, discipline, and clarity.

Class C built our foundation.
Class B will build our future.

And as we continue acquiring high-quality, well-located, renovated assets across Ohio, we remain focused on the same promise we’ve made from day one:

Operate with integrity. Invest with discipline. Build for the long term.

Sources

• CBRE Research – U.S. Multifamily Midyear Reports (2023-2024)
• RealPage Analytics – Rent Growth and Occupancy Trends (2020-2024)
• Marcus & Millichap – Multifamily National Report (2024)
• U.S. Census Migration Data (2020-2024)
• Federal Reserve Economic Data (FRED) – Construction Cost Index
• NAHB – Construction Labor Shortage Reports
• Ohio Department of Development – Intel & Honda/LG Investment Briefs
• CoStar Market Analytics (Midwest Multifamily Trends)