Glossary
Value-Add
A real estate strategy that increases an asset's value through improvement, repositioning, or better management.
A value-add strategy targets assets with unrealized potential and creates value by improving them — renovation, repositioning, filling vacancy, improving operations, or resolving a problem the prior owner couldn't. It sits between stabilized 'core' investing and ground-up development on the risk spectrum. In a manufactured-housing community, for example, value-add often means filling vacant pads and bringing infrastructure to standard.