Rethinking Value-Add in Today’s Market Artwork

The LSCRE Podcast

The LSCRE Podcast interviews institutional investors to learn more about their strategies, sponsor and investment criteria, due diligence process, and asset management practices.

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The LSCRE Podcast

Rethinking Value-Add in Today’s Market

September 22, 2025 • Rob Beardsley

In this episode of the LSCRE podcast, Craig McGrouther, Sam Morris, and I tackle the "hackneyed" concept of value-add investing and why it's been reduced to a one-trick pony of kitchen renovations. We explain how value-add became overused to the point of losing meaning, with sponsors pitching newer construction as "value-add opportunities".

We explore alternative value-add strategies: operational improvements, financial restructuring, and amenity additions like in-unit washers that can generate $50/month on a $1,200 investment. Rob shares his contrarian view that many value-add success stories from 2015-2022 were simply riding a bull market, not brilliant execution.

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