Opportunistic

Opportunistic investments typically involve significant execution risk — entitlement uncertainty on raw land, extensive vacancy or deferred maintenance, or a fundamental change of use — and target the highest returns of the four standard strategies (core, core-plus, value-add, opportunistic) to compensate. Little to no current income is expected; the return comes from the eventual stabilized or repositioned asset.

Michigan cannabis facility acquisitions frequently fall into this bucket even when the physical building itself is in fine condition, because the regulatory and licensing risk — municipal opt-in status, license availability, CRA approval timing — introduces a level of execution uncertainty comparable to a conventional opportunistic deal, and should be underwritten and priced accordingly rather than as a stabilized income purchase.

Distressed cannabis assets moving through receivership are a specific Michigan opportunistic subset: buyers can acquire real estate and sometimes licensed operations below replacement cost, but with court-approval timelines, uncertain title/lien resolution, and license transfer risk layered on top of ordinary redevelopment risk.