Picture this: You built a top-quartile core real estate fund. Decades of beating the ODCE's ups, downs, inflows, and redemptions.
If you could’ve seen this 20 years ago, you’d call it the dream.
You thought every pension fund would line up.
But despite your track record, your inbound queue is zero.
What happened?
Core plus funds.
You can't put them in a box because who needs diversification?
And they bring a little extra juice (often via leverage and/or development).
Want workforce and affordable housing?
Nuveen U.S. Cities Housing Fund.
Recession resistent subsectors?
Carlyle Property Investors.
The biggest name in real estate?
Blackstone Property Partners.
More institutional and stable?
Invesco U.S. Income Fund.
Industrial real estate's dominant landlord?
ProLogis Targeted U.S. Logistics Fund.
Core plus funds like these typically offer an additional 200 bps or so of total return compared to traditional core funds.
The traditional ODCE fund pitch: "We're good at allocating and avoiding risk."
vs. core plus funds: "We're specialists in [ ]."
What are you going with?
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