SAN DIEGO—A strong demand for residential investments is prevalent in the San Diego market, Lone Oak Fund's loan originator Alexa Mizrahi tells GlobeSt.com. As she prepares to speak on the “San Diego Attracting Capital” panel on May 28 during RealShare San Diego, we spoke exclusively with Mizrahi about San Diego investments and what buyers are most interested in in this market.

GlobeSt.com: What types of properties are your investor clients most interested in buying in San Diego?

Mizrahi: We've seen strong demand for residential investments in San Diego. The majority of our San Diego loans are single-family rentals and condo rentals. Rents continue to increase in San Diego as home values continue to appreciate. It makes sense since San Diego is considered one of America's most desirable places to live.

GlobeSt.com: What types of properties are they not interested in buying in this market?

Mizrahi: There's demand for all property types in San Diego because it is such a diverse city. There's an overwhelming amount of redevelopment going on, especially around Downtown San Diego. We've recently seen a decrease in high-end home and multifamily trades, however, which is most likely due to rapid price appreciation and compressed yields. Investors still have interest in these assets if they are able to find the right opportunity.

GlobeSt.com: What elements of a property make it more attractive to potential investors here?

Mizrahi: San Diego is a very large city geographically, so location is key. The coastal neighborhoods continue to attract investors, along with neighborhoods surrounding Downtown San Diego. We recently financed the acquisition of a well-known bar and restaurant on Garnet in Pacific Beach. That property traded at nearly $1,000 per square foot because of its prime location.

GlobeSt.com: What else should our readers know about San Diego investments?

Mizrahi: There's a tremendous amount of investment opportunity due to the strength of San Diego's economy. Unemployment levels recently fell to 5.1% in San Diego, the lowest they've been since 2008. The majority of new jobs that were created are high-paying professional, science and tech jobs. This will continue to contribute to price appreciation in real estate.