Core Plus

Core Plus assets are properties that are otherwise Core assets, but with some component of risk (opportunity) attached to it. It may be a high street retail building with a tenant that takes 10% – 15% of the space vacating in 2 years and the space needs to be upgraded and re-leased. Or it could be an otherwise Core office tower located a bit outside of the prime office submarket with a lease or two that is a bit below market. A levered IRR for this risk profile could be between ~8% to ~13%.

The Four CRE Risk Profiles

 


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