Just wondering about this, does it ever make sense to not use any debt for a real estate project? Say for example, you're having a difficult time deploying capital because cap rates are super low, but you've found a decent investment. So you want to deploy as much of your equity as possible, you're not worried about being able to invest in another project because other projects are not offering good returns.
Lets assume you have a $500M equity portfolio, and this project is $20M in value.
Does diversification concerns stop you from going all equity?
Do the tax benefits of debt make it worthwhile in this situation?
I just threw out some numbers as an example, I'm interested in the theory behind this