Navigating Challenges, Building Opportunity: Shopoff’s 2025 Year in Review
Reflecting on the past year, 2025 was marked by significant challenges for both the market and Shopoff Realty Investments (SRI). Yet, it was also a year of perseverance – where, despite ambitious goals and persistent headwinds, we achieved meaningful progress and are looking optimistically into 2026.
The market faced several obstacles that made transacting difficult. While interest rates have begun to decline, they remain volatile compared to expectations. The 10-year U.S. Treasury Note stands today at 4.17%,1 with rates ranging almost an entire point throughout the year, from 3.98% to 4.79%, far from the relief many anticipated in January. Inflation persisted throughout much of the year as well, though it was more moderate in the latter months.
Policy changes following the new administration added further complexity. Tariffs created uncertainty for new construction projects, as contractors and subcontractors struggled to lock in pricing amid fluctuating tariff rates. While tariffs may ultimately serve their intended purpose, the resulting volatility from policy shifts has been the real challenge. Combined with continuously shifting policies and unpredictable rate environments, investor sentiment remained cautious, leaving many institutional investors on the sidelines.
After a challenging start to the year, transaction volume did show signs of recovery with year-to-date figures outperforming 2024. The rebound was primarily led by strong activity in the multifamily and office sectors in 2025, while other sectors like industrial and retail were mixed.
Despite general market volatility, we completed several transactions this year. On the acquisition side, we secured the 13.75-acre Amway property in Buena Park, with plans to entitle it for residential development. We also executed several strategic dispositions, selling the remaining lots of both our SacBee and Fullerton assets, the for-sale residential portion of our Euclid + Heil project to a homebuilder, three luxury condominiums at Parkhouse Residences, a portion of our Westkin Portfolio, the Apple Valley II office building, and five office condos at Waypoint Newport. Additionally, we completed key refinancings, including $60.9 million for Magnolia Coast, $52 million for Mesa 270, and $17.8 million for Cierra Apartments.
I am grateful for the exceptional team at Shopoff Realty Investments. As reflected in the activity above, even in a year of immense challenge and uncertainty, their resilience and commitment have been steadfast, and they have continued to rise to the occasion.
Looking ahead to 2026, we believe SRI is well-positioned to pursue a robust pipeline of projects. These include our 29-acre mixed-use community, Magnolia Coast in Huntington Beach; the reimagining of The Westminster Mall with our Bolsa Pacific project; the office/industrial-to-residential conversion at 5600 Beach Blvd in Buena Park; and The Block at Elliot, an industrial and residential development in Mesa, Arizona – just to name a few.
While we do not anticipate 2026 to be a major acquisition year, we remain ready to act when opportunities arise. Our focus will be on advancing and completing several major projects, with the intention of realizing our rewards for years of hard work.
As we close out 2025, I remain appreciative of the opportunities and challenges that have shaped this year, and am hopeful that 2026 brings greater stability to the markets, unlocking the forward momentum we have all been patiently awaiting. Together, we stand ready to seize opportunities and continue building a future of lasting value.
1U.S. Treasury as of 12/8/2025, https://www.cnbc.com/quotes/US10Y
The views, thoughts, and opinions expressed in this outlook belong solely to the author. This outlook is based on current public information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification.
About Shopoff Realty Investments
Shopoff Realty Investments is an Irvine, California-based real estate firm with a 33-year history of value-add and opportunistic investing across the United States. The company primarily focuses on proactively generating appreciation through the repositioning of commercial income-producing properties and the entitlement of land assets. The 32-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group). Performance has varied in this time frame, with certain offerings generating losses. For additional information, please visit www.shopoff.com or call (844) 4-SHOPOFF.
Disclosures
This is not an offering to buy or sell any securities. Such offer may only be made through the offering’s memorandum to qualified purchasers. Any investment in Shopoff Realty Investments programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. There is no assurance that any strategy will succeed to meet its investment objectives. The performance of former assets are not indicative of future results of other assets. Securities offered through Shopoff Securities, Inc. member FINRA/SIPC, 18565 Jamboree Road, Suite 200, Irvine, CA 92612, (844) 4-SHOPOFF.
