THE OPPORTUNITY

In October 2021, Shopoff acquired a three-story, 175,000-square-foot, former Nordstrom property at the Paseo Nuevo mixed-use shopping center in Downtown Santa Barbara, California. This property was purchased for $17 million in partnership with Praelium Commercial Real Estate and with an affiliate of Dune Real Estate Partners. Paseo Nuevo is a more than 450,000-square-foot Spanish-style, open-air mixed-use shopping center originally constructed in the 1980s.

HOW SHOPOFF IS ADDING VALUE

Shopoff began developing preliminary architectural plans to convert the property from retail to creative office, including the removal of escalators, interior demolition, and the introduction of new floor layouts, balconies, and windows. In November 2022, demolition of interior improvements was completed, with additional basement and interior work finalized a few months later.

The Partnership initially explored office and retail leasing opportunities; however, due to changing market demand, Shopoff moved toward multifamily housing conversion and began developing plans for 817 State, which aims to deliver over 80 residential units, 15,000+ SF of amenities, and 8,000 SF of open space. In June 2026, the firm secured a Development & Disposition Agreement from the Santa Barbara City Council for the project. Shopoff is working on entitlements and expects to have that completed by Q3 2026. To learn more, visit 817state.com.

Disclosures

An investment in a Shopoff fund involves a high degree of risk, including the possible loss of your entire investment, and is illiquid with an uncertain liquidity date. This material does not constitute an offer to sell or a solicitation of an offer to buy any security. Securities offered through Shopoff Securities, Inc. Member FINRA/SIPC.

These properties are one of a number of properties that are managed by Shopoff Realty Investments, and owned by open and closed investment funds. For the listing of all Shopoff’s current holdings visit: https://www.shopoff.com/current-assets/