On The Minds of the Real Estate Experts Creating Value

MAY 2025

As global real estate markets evolve, investor appetite for value-add strategies is holding firm. But in a more complex, higher-risk environment, experts agree that success hinges on sharp execution, active management and sector-specific insights.

What is the current appetite for value-add investing, and how has that changed in recent years?

Prabhu Raman, Director of Investment and Asset Management, Accord Group Holdings: Before 2022, investors typically expected IRRs of 10-15 percent for value-add projects. Today, investors expect IRRs in the high teens to compensate for the increased cost of capital.

What is one of the key factors that contributes to a successful value-add project or strategy?

Raman: A proven business model for the strategy being deployed is critical. It needs to be a replicable strategy centered on the value-add plans, which enables the manager to leverage its repeat-vendor relationships, materials pricing power and market familiarity to execute the strategy.

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ABOUT ACCORD CAPITAL PARTNERS LLC

Accord, through its affiliates, is a global capital advisor, principal investor and investment manager. With its headquarters in San Francisco and personnel in Chicago, London, Hong Kong and Seoul, Accord engages with a wide variety of participants in the real estate private equity industry. Accord Capital Partners, its broker/dealer affiliate, provides advisory and capital raising services in the United States. Accord Europe Limited, its broker/dealer affiliate, provides advisory and capital raising services in the United Kingdom and Europe. For further information on Accord, visit: www.accord-group.net.