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Paul Drake's avatar

The raw numbers don't look crazy to me, Leyla, though perhaps I am missing something. I much prefer the lower leverage I can access with REITs, but as private equity this does not look crazy to me.

In most of these examples, including this one, I end up frustrated by having no information about the business plan. Is this one a redevelopment project? Or do they think it is undervalued? Or do they think the market is about to move for some reason?

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Leyla Kunimoto's avatar

Agree with you: the numbers aren’t an immediate pass. In this particular case, the story is buy, bifurcate, operate for 7-10 years, let organic rent growth lift NOI, sell.

Core+ asset. Having the ground lease in place enhances the cash flow a bit.

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