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Shopoff Realty Investments Sells 45-acre Manufactured Housing Community in El Monte for $72.5 Million

IRVINE, Calif. – February 28, 2018 – Shopoff Realty Investments (“Shopoff”), a national manager of opportunistic and value-add real estate investments, announced today that the company has successfully sold Brookside Mobile Home Park for $72.5 million, after an 11-month holding period. Located at 12700 Elliott Avenue in the City of El Monte, Calif., the manufactured housing community consists of 421 mobile home sites set on more than 45 acres.

Shopoff purchased the property in April 2017 together with Ladder Capital, a New York based real estate investment trust (“Ladder”), in a joint-venture partnership for $52.7 million, which included $14.7 million in equity and $38 million in debt provided by Ladder. The sale resulted in a 1.76x property-level equity multiple.

 

“Brookside Mobile Home Park was off-market and unsolicited when we were approached by the buyer with an offer to purchase the property at an acquisition price substantially higher than our original purchase price,” explained Shopoff Realty Investment CEO William Shopoff.  “While the sale of Brookside was certainly unplanned, we ultimately decided the sale would be in the best interest of all partners involved.”

Shopoff’s original business strategy for this acquisition included physical improvements to the property, the addition of new mobile homes to the property’s vacant sites, as well as improving park operations.

John Santry, executive vice president of Shopoff Realty Investments Land Division explained, “Although we only owned Brookside a short period of time, we were still able to add value to the property. First, we streamlined park operations by combining the fee land and the leasehold/operations. In addition, we worked closely with the City of El Monte to secure approvals that allowed carports to be built at the property, which was previously not allowed by state code.”

 

Santry continued, “Finally, we were able to change the outdated view of this property with mobile home dealers, ultimately building partnerships with these dealers that will help facilitate the move-in and sale of new homes at the property in the coming year.”

About Shopoff Realty Investments

Shopoff Realty Investments is an Irvine, California-based real estate firm with a 26-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 26-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.

 

About Ladder Capital

Ladder Capital (NYSE: LADR) is an internally-managed real estate investment trust and a leader in commercial real estate finance.  Ladder originates first mortgage loans secured by commercial real estate, makes investments in investment-grade securities secured by first mortgage loans on commercial real estate; and invests in net leased and other commercial real estate equity. Founded in 2008, Ladder is run by a highly experienced management team with extensive expertise in all aspects of commercial real estate, including origination, credit, underwriting, structuring, capital markets and asset management.  Ladder is headquartered in New York City, with branches in Boca Raton, FL and Los Angeles, CA. For more information please visit www.laddercapital.com

 

Disclosures

This is not an offering to buy or sell any securities. Such offer may only be made through the offerings 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 this strategy will succeed to meet its investment objectives. The performance of this asset is not indicative of future results of the Fund.  Securities offered through Shopoff Securities, Inc. member FINRA/SIPC, 2 Park Plaza, Suite 1120, Irvine, CA  92614, (844) 4-SHOPOFF.

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Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.

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