Shopoff seeks to maximize upside by focusing on the entitlement of land and the repositioning of commercial assets, where it believes it has the most control and return opportunity.

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A. Entitlement of raw land

B. Commercial real estate with land or entitlement elements

C. Re-entitlement of land that has existing income-producing components, including vertical development

D.Commercial real estate with no land or entitlement elements

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Value Creation Strategy1

The strategy does not include:

Land Banking Risk

We do not buy land as holding or financing mechanism for home builders.

Path of Growth Exposure

We do not buy land on the outer fringes of future growth, where there is no current demand and the exit strategy relies on future growth.

Step 1

Buy it Right
Acquire from motivated and/or off market sources,2 at a potential discount to replacement cost

Step 3

Create Value
Repurpose, reposition, recapitalize and/or develop with the goal to stabilize and achieve the highest and best use for the assets to maximize value3

Step 2

Implement Strategy
Effectuate plan to proactively increase value by improving the property through direct efforts

Step 4

Capture Event-Driven Appreciation
Sell the asset for the highest potential price and harness appreciation generated by the completion of the strategy

Assets Type Shopoff May Invest in:4

Office

Land

Industrial

Multifamily

Retail

What are Shopoff’s Avenues for Value Creation?

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REPURPOSING OF LAND

  • Including raw land and improved land with existing assets
  • Strategies involve entitlements, re-zoning and other pre-development activities
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REPOSITIONING OF COMMERCIAL ASSETS

  • Includes office, retail, multifamily, industrial, hospitality, and others
  • Strategies involve repositions, rehabilitation and recapitalization
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DEVELOPMENT

  • Includes industrial, multifamily, hospitality, single-family and build-to-rent
  • Strategy may include horizontal improvements and/or vertical construction

See important disclosures ↓

(1) There is no assurance that this value creation strategy will succeed to meet its investment objectives.
(2) Sources may include corporations, institutions, organizations, distressed, owners, and others.
(3) Repurposing assets include, but is no limited to re-entitling or redeveloping raw land or modifying the use of a commercial asset. Repositioning assets involves the changing of the position of the property in the market place (e.g. rehabilitate the asset and/or improve operations.) Recapitalizing assets include the refinance of an asset to potentially provide a more favorable capital structure.
(4) These properties are an example of investments, which are managed by Shopoff Realty Investments, but owned by closed investment funds.

*Entitlements add value to real estate by securing land use approvals that allow a property to be developed in a manner that meets market demands.

This is neither an offer to sell nor a solicitation of an offer to buy any security. An investment in a Shopoff limited partnership involves a high degree of risk, including the possible loss of your investment, and is illiquid with an uncertain liquidity date. Past performance is not indicative of future results. Securities offered through Shopoff Securities, Inc., member FINRA/SIPC.