Acquiring core assets has been a pain for many institutions in recent years. But with a little savvy and hard work, investors have demonstrated that development is one means to building a strong core — portfolio that is.

Everybody loves core. And why not? Stable assets in prime urban locations on both coasts and Chicago hold obvious appeal. Beautiful new buildings attract enviable rosters of prestigious tenants willing to commit to long-term leases, virtually guaranteeing a steady cash return. Core properties have been ATMs for pension funds and other institutions. What’s not to love about core?

Well, for some, current core pricing leaves a lot to be desired. In a yield-starved world, the ability to acquire a predictable cash flow has come at a steep price. Rising real estate allocations and easy access to cheap money during the peak of the cycle simply compounded matters, ratcheting up competition for core and drawing a dizzying array of suitors for every prime bu