Large Strip malls pros/cons
I've been researching Strip malls that range from $2.5mm to $4mm. Under 10 years old, good traffic counts and in growing areas. In this range, the name of the game seems to be get it 100% leased then sell for an 8.5 cap.
I construe this as a pretty high risk investment. If a tenant leaves or rates rise, what little profits you have are wiped out. I know while things are good, the tenants are paying down a large mortgage and there can be a light at the end of the tunnel. Below are two examples of Cincinnati Strip malls: Give me your thoughts on strip centers. Would you spend your money on investments like this at 8.5 caps? Thank you all!
$2.6 Million
$4 Million