Chapter 6: Private Real Estate

In this section

• Private Real Estate Investment Features and Value Drivers
  Explore the critical features and key value drivers of private real estate investments, including macroeconomic factors, leverage, and performance measurement considerations. Gain insights into how property location, tenant mix, and market dynamics shape the stability of rental income and capital appreciation potential.
• Value‑Add and Opportunistic Strategies
  Explore high-risk, high-return private real estate strategies, covering value-add projects, opportunistic deals, underwriting considerations, capital structures, and exit planning for CFA® Level III candidates seeking deeper expertise in Private Real Estate.
• Due Diligence and Valuation Processes for Private Real Estate
  Explore the comprehensive due diligence strategies, valuation methods, and market analyses essential for effective private real estate investments, with practical tips and examples.
• Timberland and Farmland Investments
  Explore the unique risks and rewards of timberland and farmland, including value drivers, operational considerations, and ESG factors, within a private real estate context.
• Risk and Return of Private Real Estate in Strategic Asset Allocation
  Explore how private real estate can strengthen a multi-asset portfolio, addressing diversification benefits, illiquidity, valuation challenges, and risk-return dynamics.
• Development Projects and Construction Risk
  Explore how to effectively manage the complexities of development projects, from feasibility to financing, while mitigating construction risk in private real estate investments.
• ESG Requirements and Green Certification Implications
  Explore how ESG requirements and green certifications impact private real estate investments, covering factors such as occupant welfare, environmental footprint, and transparent governance.