Shopoff Realty Investments’ entitlement strategy focuses on opportunities which include partial built, mapped and unentitled real estate typically held by lenders, builders or undercapitalized developers, as well as existing assets for re-entitlement.
Target investments include properties that, after analysis, have been determined to have a value enhancement component, which typically requires entitlement of raw land, completing entitlement efforts begun by a prior owner, or adapting an alternative redevelopment or use strategy for the target property.
Shopoff Land Entitlement Process
The strategy does not include:
Land Banking Risk -We do not buy land as a holding or financing mechanism for homebuilders.
Path of Growth Exposure – We do not buy land on the outer fringes of future growth where t here is no current demand and the exit strategy relies on future growth.
Vertical Construction Risk – We do not take on risks associated with ground-up construction (i.e., “sticks and bricks”), except for improvements which are necessary for the protection, repair or maintenance of a property or portion thereof during its holding period of which is ancillar y to the Fund’s business plan.
What are Entitlements?
Entitlements add value to real estate by securing land use approvals that
allow a property to be developed in a manner that meets market demand.
Entitling Property can include:
- Site Plan/Tentative Tract Map
- Zone Change
- Specific Plans
General Plan Amendment
Development Agreements
(1) There is no assurance that this strategy will succeed to meet its investment objectives.
(2) Sources may include corporations, institutions, organizations, distressed owners, and others.
Shopoff Land Entitlement Strategy
Shopoff seeks to minimize potential risk and maximize upside by focusing on the entitlement segment of the land business, where it believes it has the most control and return potential.*
*There is no guarantee that these goals will be reached. Risk, upside, control and returns are subjective and will vary. Past performance is not a guarantee of future results. There is no assurance that this strategy will succeed to meet its investment objectives.