PHOENIX-Cole Real Estate Investments has paid $45 million for three retail centers located in secondary and tertiary markets in three states. The multi-tenant properties are: Red Oak Village in San Marcos, TX; Pinehurst Square West in Bismarck, ND; and Falcon Valley in Lenexa, KS.

“We buy in primary markets, as well as secondary and tertiary markets,” says Scott Holmes, Cole’s vice president of acquisitions and team leader for multi-tenant retail acquisitions. “Our main focus is not on the market, but the trade area, the long-term nature of the tenants and the credit of the tenants.”

Holmes tells GlobeSt.com that yields tend to be lower in primary markets, especially coastal markets such as Los Angeles and Washington D.C. “Secondary and tertiary markets can provide yields premiums, anywhere from 50 to 150 basis points higher than primary markets,” he says.