By: Larry Feldman
Larry Feldman: From a financial standpoint, because we’re buying existing property below replacement cost, all of the cost of renovation plus the cost of our purchase price still winds up at a very attractive cost basis. So, an investor still can make money post-renovation versus investing in a developer that only builds new buildings from the ground up, which are actually more expensive to build from the ground up than what we produce by renovating an existing building. We can still come out to a cost basis that is significantly lower than a brand-new building. So, that gives us an edge, as well, as new product now comes on the market.
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