Value add real estate funds
Value add real estate funds aim to increase cash flow and value by buying and improving underutilized assets, potentially yielding higher returns than traditional real estate investments.
Private Market Investment Opportunities
- MVA2, Multifamily Value Add Fund by Paperfree.com
- [closed] MFF2, Multifamily Florida Fund 2
![[closed] MFF2, Multifamily Florida Fund 2](https://d2sv4n3pfes7l9.cloudfront.net/file_paperfree_144_2023-5-5-36-11-p_pf-avatar.jpg)
- [closed] CMF. Cedar Multifamily Fund
![[closed] CMF. Cedar Multifamily Fund](https://d2sv4n3pfes7l9.cloudfront.net/file_paperfree_144_2020-8-21-19-57-p_pf-avatar.jpg)
- SHF1, Investing in senior housing to drive capital growth
- BTRF, Invest in build to rent fund
About Value Add Investment
Investing in a value-added real estate fund can be smart for those seeking a commercial real estate investment strategy. Purchasing an underutilized asset and implementing physical and operational improvements aim to increase cash flow and value. This approach allows investors to benefit from the fund manager's expertise and experience while potentially yielding higher returns than traditional real estate investments.
What are value add real estate funds?
A value-added real estate fund is an investment company that follows a commercial real estate investment strategy. The fund manager purchases an existing asset with in-place cash flow but is not operating at its full potential. The aim is to increase cash flow and value through various physical and operational improvements.
Why invest in value-added real estate?
The potential return on investment (ROI) for value-added real estate investment strategy is higher than that of a core or core-plus investment strategy.
What are examples of value-add strategies and active management techniques?
| Value Add Strategies | Management Techniques | The Risk Level |
| OPERATIONS IMPROVEMENTS |
Creating additional value by reducing operating expenses and efficiently executing lease-up strategies. |
Low risk |
| RENOVATION LIGHT |
Investing capital to increase occupancy and leasing activity, move rents to market, attract higher quality tenants, and enhance appeal to institutional buyers upon exit. |
Low-mid risk |
|
RENOVATION MAJOR |
Investing a significant amount of capital in a property within its competitive set often results in a substantial physical upgrade to its quality. |
Mid-high risk |
| CHANGE-OF-USE |
One way to add value to an existing property is to repurpose it for a different use, for example - converting a retail space into office space., or converting office space into multifamily property. |
High risk |