Value-Add Redevelopments
Lubert-Adler has historically been able to create significant value and gain a cost advantage through the acquisition and conversion of vacant properties and redevelopment into a higher and better use. Through redevelopment, Lubert-Adler is able to create income streams, rather than acquiring them, thereby capturing higher margins.
The key to this strategy is the competitive cost advantage afforded by this approach. In most cases, the completed product is of high quality, yet its cost basis is typically 70% of its competitive set. This lower cost basis provides for greater downside protection, as well as the potential for higher profit margins.
