IPE: In Plain Sight - The Core Plus real estate investment opportunity that every investor should know about
The article "In Plain Sight: The Core Plus Real Estate Investment Opportunity" by John Carrafiell, Co-CEO of BGO, explores the transformative dynamics driving the Core Plus investment strategy in today's commercial real estate landscape. BGO identifies a unique opportunity amid capital flow disruptions, demographic shifts, and evolving tenant behaviors. Core Plus investments focus on acquiring stabilized assets at discounts due to liquidity pressures faced by sellers. By targeting assets with strong rent growth potential and avoiding high-risk operations, BGO’s strategy prioritizes income growth over asset appreciation, leveraging its market insights and global capital visibility.
Key to BGO’s success is its "Dislocation Not Distress" thesis, emphasizing value creation in middle-market investments. Supported by a data-driven approach and expertise across asset classes, BGO capitalizes on dislocation through deals like acquiring mission-critical properties at significant discounts. This approach positions BGO to deliver risk-adjusted returns while navigating challenges posed by a high-cost capital environment and supply-demand imbalances.
