Value-Add Investment Strategy
Value-add: purchase underperforming property, improve, and increase value. Improvements: physical (renovations), operational (management, occupancy), and financial (restructure). Target: 12-20% IRR. Moderate risk. FL strategies: apartment repositioning, retail conversion, office modernization, and land entitlement. FL markets: Tampa, Orlando, Jacksonville, South FL (growth + limited supply). Risks: construction, lease-up, market, financing, and FL-specific (hurricane, insurance). Mitigate: due diligence, conservative underwriting, contingency reserves.
Strategy
- Buy underperforming, improve
- Physical, operational, financial
- Target: 12-20% IRR
FL Opportunities
- Apartments, retail, office
- Land entitlement
- Tampa, Orlando, Jacksonville
Risks
- Construction, lease-up, market
- Hurricane, insurance
- Conservative underwriting
Related Terms
- Cap Rate — Valuation
Barnes Walker Real Estate
Barnes Walker’s attorneys advise on FL value-add investing. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC