CNBC: How one CRE giant is finding undervalued assets in unlikely areas
BGO, a global real estate investment manager with $89 billion in assets under management, is harnessing artificial intelligence to revolutionize its investment strategies. By backtesting two decades of its own deals, BGO discovered that success is determined primarily by local market fundamentals, not national trends or property pricing. This insight has enabled the firm to identify undervalued opportunities that traditional research overlooked.
A prime example is BGO’s investment in an industrial development in Las Vegas with Northpoint Development, which its AI-driven model projected would outperform significantly. The bet has paid off, with rents nearly doubling expectations, validating the power of its data-driven approach. Similar analyses have guided successful investments in Florida and the Rust Belt, with BGO’s leadership crediting AI and data science for materially improving performance and reshaping its future portfolio strategy.
