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Jeff Lefko Lefko: “With multi-tenant pads, investors get the return they desire and a predominately passive investment.”

CORONA DEL MAR, CA—Outside of dollar stores in tertiary markets, 6% and 7% cap rates do not exist in California’s current retail cap-rate climate, so investors are eyeing multi-tenant pads in strong markets outside of California, Hanley Investment Group associate Jeff Lefko tells GlobeSt.com. As we recently reported, Lefko, along with the firm’s EVP Bill Asher, completed the sale of two new construction multi-tenant pad buildings in separate transactions in the Kansas City metro area. We spoke with Lefko about why California buyers are attracted to multi-tenant retail investments in other markets and where he sees this trend heading.

GlobeSt.com: Why are buyers from California still looking for multi-tenant retail-pad investments in other parts of the country? Lefko: Outside of dollar stores in tertiary markets, 6% and 7% cap rates do not exist in this current cap-rate climate in California, so the next best option for many passive investors is multi-tenant pads in strong markets outside of California. With multi-tenant pads, investors get the return they desire and a predominately passive investment. Many investors also choose multi-tenant pads over single-tenant properties to diversify the risk if a tenant were to leave.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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