Principal Real Estate Investors has significant experience helping institutional investors with the performance of their real estate programs through the implementation of value-add strategies. Since 2001, we have executed 289 value-add investments (lease-to-core and build-to-core) valued at over $12.1 billion on behalf of institutional clients.
- Value-Add: purchase of poorly leased properties or those with substantial near-term lease rollover, typically at prices below reproduction costs, then renovating or repositioning them to a stabilized, core status
- Development: ground-up development of new properties, ranging from strong pre-leasing to speculative development
- Strong preference for “green” properties that have or can achieve LEED® or ENERGY STAR® certification, which can help increase leasing velocity, tenant retention, net operating income, and the pool of potential buyers
We employ the following strategies to help add value to our clients’ investments: