A value-add model in CRE investment
- Brenda Le Jones
- May 27
- 1 min read
A value-add model in CRE investment is buying an underperforming property to increase its value through strategic improvements.
Key highlights:
* Goal: "Force" appreciation by boosting Net Operating Income (NOI).
* Property Type: Often underperforming due to physical issues, operational inefficiencies, or financial distress.
* Strategies:
* Physical Upgrades: Renovating interiors/exteriors, adding amenities, or repositioning the property.
* Operational Enhancements: Improving management, increasing occupancy, or cutting costs.
* Returns: Medium-to-high risk, but with the potential for higher returns than stable core investments.
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