How do you define a “vanilla” asset?

I see this term a lot here in regards to some LifeCo companies and such.

What is the meaning behind it? Is it basically a Class A asset say office, that is stabilized with long term leases and not much value add opportunities?

6 Comments
 

Yeah, think of vanilla as 'core'. Literally all you do is go through the motions of the acquisition process and once you buy it you're basically just clipping a coupon. Very low maintenance/non-management-intensive deals.

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