Los Angeles-based BH Properties is paying more attention to other asset classes as competition ratchets up in the apartment sector. The company, a value-added player that is focused on the Southwestern U.S., acquired about 2,000 Class B and C apartment units in 2012 and 2013 but is seeing less value in the sector, said Steve Jaffe, executive v.p.

“What’s changed for us is that the multifamily component got incredibly hot and pricing for us outstripped the rents, to the point where it’s difficult to buy C Class assets at current pricing because you can only push the rents so far to justify pricing,” Jaffe said, noting this led the company to shift to markets and sectors that were less frothy. It also started to pay more attention to the retail and industrial sectors.