Haight picked out replacement property, a 15% stake in a 113, 000-square-foot shopping center in Chicago.

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If a surge in demand pushes the price of existing property above its replacement cost, developers have an incentive to build more.

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By buying the property at a fraction of its replacement cost, the KKR venture will have capital to invest in building space for new tenants.

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This includes insurance and property taxes, plus all maintenance and replacement.

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