Quantum Acquisitions will operate in the Apartment Building Operators industry (Standard Industrial Classification 6513) which includes “establishments primarily engaged in the operation of apartment buildings. Apartment buildings are defined as containing five or more housing units.” More than 109,000 establishments comprise this nationwide $31.3 billion industry. The average company reports annual revenues of $4.0 million while employing six people.[1]

While it is important to have an understanding of the industry in general, it is even more important to understand that Quantum feels it has defined its industry further to include only the less volatile C classification of the Apartment Building Industry. This sector is more stable and is able to be purchased at prices typically 35% to 45% of replacement value. This makes operation and disposition of these assets much more predictable. Furthermore, these assets respond much more favorably to quality management than the more expensive properties. The list below outlines the rough classification of Multi-Family Assets within the industry.

• A Class
  High End, New to 5 Years Old, Central to Business District, Relatively High Earning Residents, Mainly White Collar, Residents Likely to Own Home in Near Future, High Quality Neighborhood
• B Class
  5 to 20 Years Old, Blue and White Collar Mix, Upwardly Mobile in Earnings, Quality Neighborhood, Future Home Owners
• C Class
  20 to 40 years Old With Partial Restoration, Blue Collar, Lifetime Renters, Mainly Hourly Workers, Some Section 8 Housing, Transitioning Neighborhood
• D Class
  40+ Years Old, Noticeably Run Down, Large Percentage Section 8 Housing, Relatively higher crime neighborhood