LOS ANGELES-While commercial real estate has regained its allure for investors chasing return premiums; as a whole, opportunistic investors are working with a different set of objectives than the institutional buyers.

Institutional buyers are happy to accept a 4% to 6% return on in-place, stabilized cash flow in exchange for relatively low risk.

Alternately, opportunistic investors seeking higher yields and accepting additional risks, have focused on identifying value-add/asset repositioning strategies to reach their return goals. Prevalent strategies include stabilizing troubled assets such as broken condominiums, office, retail and multifamily assets with vacancy, poor management history, significant rehab requirements, repositioning in the market, etc.