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Value-Add

Marquette is uniquely focused at identifying areas to improve an asset physically and operationally in order to increase the value of a property. While most investment firms stop at the initial acquisition, Marquette’s dedicated property team works diligently to execute the value-add business plan that is created by the acquisitions team.

"Marquette's success is largely due to our strong track record in executing value-add business plans, turnaround opportunities, and developments that maximize returns for our institutional partners."

NICK RYAN - CEO, MARQUETTE COMPANIES

Our value-add strategies include:

Below Replacement Cost

  • Purchase strong Class A and B assets for below replacement cost
  • Rising construction costs means some assets can be purchased today for better return than building
  • The right basis insures there is still plenty of room to exit at a good basis

Lagging Rents

  • Assets where the current net effective in place means rents are lagging behind the rest of the comp set
  • Allows implementation of a value-add strategy where the renovation or repositioning is simply moving rents up to meet the rest of the market

"Broken" Opportunities

  • Identify the issue and "fix it" with a value-add strategy
  • Issue is typically mismanagement, cosmetic overhaul, major renovation, repositioning, or simply adding or enhancing amenities
  • Budgeted in the underwriting to create an effective value-add strategy that actually works