November 2023 Updates

Key Takeaways

Core: Low risk, stable, moderate return, prime location and steady income

Core +: Moderate risk, balanced risk-return, minor improvements and consistent income

Value-Add: Higher risk, need to be repositioned, management intensive and higher returns

Opportunistic: Highest risk & reward, most speculative, involve development, distress or high leverage.

Core

  • Low Risk
  • Stable, income-producing properties
  • Moderate returns
  • Primary goal: capital preservation and steady income
  • Invest in well-established, fully leased properties in prime locations.
    1. Core +

    2. Moderate Risk
    3. Slightly more risk-tolerant than core funds
    4. Moderate returns with a balanced risk-reward profile
    5. Invest in properties needing minor enhancements or have some leasing challenges, but still aim for consistent income.
      1. Value-Add

      2. Higher Risk
      3. Target properties that require significant improvements or repositioning to increase their value
      4. They are willing to take on higher risks in exchange for the potential of higher returns
      5. Value-add funds often involve more active management and renovation projects.
        1. Opportunistic

          1. Highest Risk
          2. The most aggressive and speculative
          3. They invest in properties or projects with substantial risks and potential for substantial rewards
          4. These funds may involve development, distressed assets, or high-leverage strategies.
          5. TO LEARN MORE ABOUT CAPITAL, RESIDENTIAL AND CONSTRUCTION, SCHEDULE A BRIEF CALL WITH US

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            Silvia Lupu | Post Author
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