Newer Properties Don’t Always Mean Lower Risk

Newer properties often feel safer.

Less deferred maintenance.
Modern design.
Fewer immediate capital needs.

But age isn’t the only driver of risk.

Newer assets can carry:

• higher basis

• tighter margins

• more sensitivity to rent changes

When pricing is built on strong assumptions, there’s less room for those assumptions to be wrong.

Older properties often show their issues more clearly.

Newer ones can hide risk in what’s expected—not what’s visible.

The question isn’t how new the property is.

It’s how much has to go right to support the price.