THE OPPORTUNITY

Los Alisos Village Shopping Center was acquired by Shopoff in October 2015 for $11.5 million. The property is located on a prime intersection of a dense residential area of the city. The property was a prime target for repositioning, as the structure was outdated and in need of significant exterior renovations, and many of the retail spaces required either upgrading or lease-up.

HOW SHOPOFF IS ADDING VALUE

A full exterior upgrade and beautification of the property was completed, including upgrading the roofs, modernizing exterior building facades, painting, landscaping, asphalt, and more. In addition, Shopoff was able to convert several thousand square feet of superfluous exterior deck space into valuable, rentable square footage. The property also benefited from the addition of new high-quality tenants and the renewal of many existing tenants’ rent at market rates, which were substantially above the in-place rental rates at the time of acquisition, adding additional value to the asset.

THE RESULT

In late 2018, Shopoff further enhanced the property’s value by completing a refinance at very favorable terms. With all renovations complete and lease-up nearly complete, Shopoff marketed the property for sale to a buyer looking for well-positioned, stabilized commercial real estate. The sale of 27,000 square feet was completed in December 2020, and the remaining 0.67-acre parcel containing a 4,978-square-foot building leased to Village Montessori School was sold in April 2022.*

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. *While this transaction was successful, past performance does not guarantee future results. Each asset and market environment is unique.

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/