Retail Property in Milwaukee - neighborhood and cap rate?
Hi Milwaukee BP'ers. I'm from the Twin Cities and am hoping for some friendly advice.
I'm looking at a retail strip building on the border of Metcalfe Park and Walnut Hill neighborhoods. From what I've read this area is economically depressed and considered one of the toughest regions in the city. What's your take? What is this area like? Would you invest there?
This is a pretty hands off property (NNN leases, already occupied/stabilized).
What would you expect a fair cap rate to be for that neighborhood? This is around an 8.5 cap.
Any red flags?
Most Popular Reply
The area you are referencing is very depressed, blighted, and crime ridden. There aren't many worse areas of the city you could pick. Metcalfe Park is an extremely rough area. I don't know who the tenant is in this particular commercial deal--you mention it being occupied and stabilized--but there's a good chance you are going to have numerous boarded up buildings in your immediate vicinity. So definitely not a stable area IMO.