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How ‘Replacement Cost’ Can Afford Assets a Competitive Edge

To say a property falls “below replacement cost” refers to the idea that if that existing property were built from scratch today, it would be more expensive to develop given significantly higher construction costs, including land, building materials, labor, and permitting. Therefore, when acquiring a commercial property at a significant discount to replacement cost, investors can potentially be afforded a safety margin and a competitive edge, all else being equal.

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What is Core, Core Plus, and Value-Add Real Estate?

When considering what types of investment to add to a portfolio, different investors will have different tolerance levels for risk. While some might be willing to take additional risks in order to possibly garner a higher net return (value-add), others prefer a real estate risk profile on the lower end of the scale (core) and others might want something in between (core plus).

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Texas and Oil: How the State’s Economic Engine Has Diversified

CONTI Capital’s approach to multifamily investment favors markets with flourishing industry clusters, as they tend to be associated with higher levels of productivity, innovation and a skilled workforce. Texas’ energy sector is one of the oldest industry clusters in the U.S., and although the oil and gas industry tends to move in line with oil prices, we believe the industry can be a critical component of a thriving regional economy.