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.
CoreLow RiskStable, income-producing propertiesModerate returnsPrimary goal: capital preservation and steady incomeInvest in well-established, fully leased properties in prime locations.
Core +Moderate RiskSlightly more risk-tolerant than core fundsModerate returns with a balanced risk-reward profileInvest in properties needing minor enhancements or have some leasing challenges, but still aim for consistent income.
Value-AddHigher RiskTarget properties that require significant improvements or repositioning to increase their valueThey are willing to take on higher risks in exchange for the potential of higher returnsValue-add funds often involve more active management and renovation projects.
Highest RiskThe most aggressive and speculativeThey invest in properties or projects with substantial risks and potential for substantial rewardsThese funds may involve development, distressed assets, or high-leverage strategies.