What is Core, Core Plus, Value Add and Opportunistic?

What is Core, Core Plus, Value Add and Opportunistic?

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Real estate categorizes the general risk/reward of a property into four different asset profiles.

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1. Core: Lowest Risk/Lowest Reward - These properties require no renovations and are often positioned in prime markets with high occupancy.
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2. Core Plus: Lower Risk/Lower Reward - These properties might require some renovations, with below market rents, and some vacancy.
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3. Value Add: Medium-to-High Risk/Medium-to-High Reward - These properties entail renovations or re-tenanting to bring the property up to market.
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4. Opportunistic: Highest Risk/Highest Reward - These properties will require major renovations or a ground-up development.

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