E123 – 9% Cap Rates in 2019? Shopping Centers Say “Yes!”

Much of the U.S. isn’t willing to invest in retail shopping centers, which there are many good reasons for, however, the media is taking a view on this topic which encompasses certain pockets of the retail sector rather than focusing on the industry as a whole. If you’re willing to look right when everyone else is going left, you are typically in a good position as an investor. Taking a bullish approach on the retail sector is a perfect example of this, as it is currently one of the only asset classes experiencing genuine cap rate expansion.

Our guests for today are Robert Levy and Philip Block, who are both Managing Partners of LBX Investments which owns and operates shopping centers. Prior to launching LBX in February 2018, Robert co-founded Big V Capital, an owner-operator of Southeastern U.S. shopping centers, and Philip was a partner at Big V Capital and responsible for acquisitions, asset management, and capital raising.

Today we are going to discuss…

  • What is going on at the institutional and REIT level which is creating an opportunity in the retail sector
  • What questions you can ask your tenants to try to get additional information when conducting due diligence on shopping centers
  • Why it can actually be a red flag if a retail center is charging top of market rents

Learn more about our guest:

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