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Value-Add, the Recent Darling of Apartment Investors, Fades

Older Fixer-Uppers Are No Longer Seen as Guaranteed Cash Machines
The 460-unit Marquis at the Parkway up for sale in Denver is an example of what investors would call a classic value-add strategy. (CoStar)
The 460-unit Marquis at the Parkway up for sale in Denver is an example of what investors would call a classic value-add strategy. (CoStar)
By John Doherty
CoStar News
May 14, 2020 | 10:38 P.M.

Value-add has become a favorite strategy of apartment investors: buy older, suburban apartment complexes, polish them up and raise rents. It’s a tried-and-true way to capture bigger returns as top-of-class properties become too pricey.

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