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News Release: Shopoff, Praelium, Blackbird Joint Venture Sells Leasehold Interest in Santa Barbara County Office Building for $13.9 Million

By May 23, 2022No Comments

Shopoff, Praelium, Blackbird Joint Venture Sells Leasehold Interest in Santa Barbara County Office Building for $13.9 Million

Santa Barbara, CA – May 17, 2022 – Shopoff Realty Investments (“Shopoff”), Praelium Commercial Real Estate (“Praelium), and Blackbird Investment Group (“Blackbird”), announced the leasehold interest sale of 50 Castilian Drive, a 43,655-square-foot office building, occupied by AppFolio, in the city of Goleta, in Santa Barbara County, CA, for $13.9M (5.37% Cap rate). The seller was represented in a joint effort between Newmark (Sean Fulp & Matt Berres) and Hayes Commercial (Steve Hayes & Francois De John).

“The Castilian Creative Campus has been a fantastic acquisition for our partnership, and one that allowed our teams to show how truly innovative and creative they can be,” explained Shopoff President and CEO William Shopoff. “Rather than see this as a simple acquisition of an office building, we identified the property’s hidden value early on and implemented a multifaceted strategy to create value; bifurcating the improvements from the underlying land by creating ground leases, and simultaneously selling the ground leases concurrent with our acquisition to reduce our investment and mitigate risk, and then positioning the three individual buildings as separate assets for sale.”

Shopoff, Praelium, and Blackbird (collectively “Castilian Holding Co.”) purchased Castilian Creative Campus (50, 70 and 90 Castilian Drive), a three-building campus, occupied by AppFolio, a nearly $3 billion market cap publicly traded company, on December 31, 2020. The partnership sold the fee interest concurrent with the acquisition, through separate 99-year ground leases for each of the three buildings. AppFolio occupies the campus as its company headquarters, with separate 11-year triple net lease for each building. Founded in 2006, AppFolio offers industry-specific, cloud-based business software solutions, services, and data analytics to the real estate and legal markets.

Scott G. San Filippo, founding principal of Praelium Commercial Real Estate, added, “Understanding the market dynamics unique to Goleta was critical to creating this opportunity for all parties. Goleta has been attracting a wide range of tech and other companies for many years, and has become one of the most sought out office markets in California. However, with our strategy to separate the acquisition into three individual long term triple net leased buildings, then sell off distinct ground leases, and position each building to have much lower disposition pricing, we were able to reach a much broader buyer pool interested in these exceptional credit tenant assets.”

About Shopoff Realty Investments
Shopoff Realty Investments is an Irvine, California-based real estate firm with a 30-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 30-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 or call (844) 4-SHOPOFF.

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 any strategy will succeed to meet its investment objectives. The performance of this asset is 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.

About Praelium Commercial Real Estate
Praelium is a commercial real estate advisory firm founded in 2015, and headquartered in Orange County, California. Led by Michael E. Meyer and Scott G. San Filippo, over the past decade the partners have worked on the acquisition and stabilization of 5 million square feet of real estate. Utilizing its proprietary, research-guided, and data-driven approach, the company focuses on acquiring exceptional commercial property investments with a primary focus on office projects located in the Southeast and Western US.

About Blackbird Investment Group
Blackbird Investment Group is a boutique real estate investment management firm based in Chicago, Illinois, and is a multi-disciplinary, value-oriented investor that targets undervalued, overlooked, complex, or mispriced assets. Its highly analytical approach combines local market knowledge and national capital markets expertise with economic and demographic data to uncover relative value opportunities and exploitable trends. For additional information, please

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