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 1924.

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, the focus was shifted to residential development. A third-party feasibility study confirmed the viability of multifamily use, and the City Council has expressed support for the proposed development of approximately 112 multifamily rental units on the site. The Partnership intends to secure full entitlement approvals by the first half of 2026 from the City of Santa Barbara for a 112-unit residential development with ground-floor retail.

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/