Core properties generate stable and consistent cash flow, with values that tend to be the least volatile. If you are in search of low-risk conservative opportunities, Core properties are the best option. These properties require very little management and are generally considered passive investments when purchasing directly. This approach is popular in both the commercial property market and the mainstream residential market.

Typically through strategic leasing improvements or light property upgrades, core plus property owners enhance their cash flow. Similar to core properties, the expectation is that these properties will be of high-quality and well-occupied. There is greater risk associated with Core Plus investments, as income can be less predictable. 

'Value Add' buildings may face existing occupancy issues, existing management problems or may require extensive refurbishment work. These investments necessitate a hands-on approach from seasoned market experts like BlackGate who understand how to create value from a property with limited scope. Such investments are generally considered moderate to high risk.

Opportunistic investors have an appetite for high risk. These projects are typically complex and may not yield a return on investment for three or more years. Examples of opportunistic investments include ground-up developments, acquiring empty buildings, land development, and repositioning a property from one use to another. Opportunistic properties often come with little to no cash flow at the time of acquisition but possess the potential to generate significant cash flow once value has been added.