Just in general I would stay away from the bad areas since certain areas theft is a problem...how do I know that?  

They’d hire someone to clean and paint, and put the house back on the market at a slightly below retail price.  

I've heard of terrible property management but this sounded like outright theft (rather than mismanagement) based on your story.  

San Diego is expensive to Purchase, maintenance and cap ex is expensive, property tax at purchase is expensive in terms of dollars (average SFH prop tax at purchase is ~$1k/month in San Diego), new retail (MLS) purchases are negative cash flow when allocating properly for expenses, it is tenant friendly in terms of regulations but this is largely due to the big advantages LL have due to crazy low vacancy rates.  

Hi All,I am looking to buy a retail commercial property and looking for options for loan.

As she personally knows the syndicator she may be able to garner far more info in conversations with them about this and other investments, which can give her an informational asymmetrical advantage over 99% of retail investors as well.  

Retail on these condos is around $125k ea. 

The local economy is supported by several diverse sectors, including healthcare, manufacturing, and retail, which sustain employment levels and underpin rental demand.

No, I don't buy retail.

The remote chances of a theft are inconsequential as if someone wants in a home bad enough, they are kicking in the back door.