Value-add acquisitions where a defined plan — not the market — drives the return
Value-add returns are earned through execution, not appreciation. Murivest sources U.S. commercial real estate with a clear, underwritable improvement thesis — physical, operational, or leasing-led — and structures the acquisition around the cost and risk of delivering it.
Underwriting the plan, not the promise
A credible value-add deal has a specific, costed, and time-bound path to improved net operating income. We underwrite that path before we underwrite the upside.
Physical Repositioning
Assets where targeted capital expenditure — renovation, re-tenanting, or amenitization — unlocks a step-change in net operating income and basis recovery.
Lease-Up & Re-Leasing
Stabilization of in-place vacancy or near-term rollover through active leasing strategy, often paired with operator or broker relationships we already maintain.
Operational Improvement
Expense restructuring, management transition, or operational realignment that improves yield without relying on market appreciation alone.
Defined Downside
We underwrite the cost and execution risk of the improvement plan explicitly — the thesis must hold even if the upside is only partially realized.
The plan is the asset — so the plan must be defensible
Value-add is where sourcing and underwriting converge most intensely. The entry only works if the improvement plan is realistic, costed, and executable by a known team. We pressure-test the operator, the budget, and the lease-up assumptions before recommending a basis — and we model the return holding the upside at a discount.
Capital structure matters here: the right leverage and timeline can make or break a value-add return. We coordinate closely with our capital advisory practice to align the financing with the execution plan.
What we evaluate before recommending basis
- Costed capital plan with contingency and realistic timeline.
- Lease-up or re-leasing assumptions benchmarked to market absorption.
- Operator capability and alignment of incentives.
- Refinance or exit basis supported by stabilized comparables.
Positioning value-add on the risk spectrum
Value-add sits between stabilized core and opportunistic. Depending on execution risk, a mandate may lean toward either neighbor.
Bring us your value-add thesis
If you have a defined improvement plan, we will source the asset and structure the capital to execute it.