NORTHBROOK, IL—Allstate Investments is turning to entity-level investment, shifting its focus from commercial properties to the operating companies behind those assets, PERE reported. The rationale for the change is that property-level investments no longer generate the necessary levels of returns.

“The day of the asset play is over,” Edgar Alvarado, group head of real estate equity at Allstate Investments, told PERE. “If you go after an asset in the market, call it a multifamily complex or an office building, 95% of the time it’s going to be an auction and you’re just going to be highest bidder. I don’t feel that’s the right way to make money anymore.”

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