THE OPPORTUNITY

In December 2020, Shopoff acquired the Castilian Technical Center located at 50, 70, and 90 Castilian Drive in the city of Goleta, in Santa Barbara County, CA. The property was purchased for $61 million in a joint venture with Praelium Commercial Real Estate and Blackbird Investment Group. The property includes 10.82 acres comprised of a fully renovated, three-building, 165,905-square-foot creative office campus, occupied by AppFolio, a nearly $11.2 billion market cap, publicly traded company.

HOW SHOPOFF IS ADDING VALUE

Upon closing the acquisition, Shopoff created three separate 99-year ground leases, which were sold simultaneously. In May 2022, 50 Castilian was sold. 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 a separate 11-year triple-net lease for each building. In July 2023, Google LLC entered into a 10-year sublease agreement with AppFolio for occupancy of Building 90.

In January 2024, the property was refinanced through NWL Company, LLC, resulting in a new $14.95 million loan.

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/