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Residential Land Development

All photos and tract maps shown are of properties currently or formerly owned by Shopoff Realty Investments Limited Partnerships.

Uptown Newport - 1,244 Multi-Family Units - Newport Beach, California

Project Description:
Shopoff Realty Investments successfully completed the entitlement process in the City of Newport Beach in early 2013 with unanimous approvals from both the Planning Commission and City Council. The entitlements and land use approvals include: a certified environmental impact report (EIR); Planned Community zoning with site-specific zoning standards; architectural and landscape design guidelines; a tentative tract map; an affordable housing implementation plan; and a development agreement that vests the entitlements through 2025. Shopoff Realty Investments also gained approval from the Planning Commission for master architecture and landscape architecture that allows subsequent site development plan approvals to be processed at the City staff level and does not require future Planning Commission or City Council approval as is typically required for projects within the City. This will expedite and substantially simplify the future implementation of individual buildings planned for construction in Uptown Newport.

Location:
Uptown Newport consists of 25 acres of developed land located in the City of Newport Beach on the north side of Jamboree Road at Fairchild Road, just east of the intersection of Jamboree Road and MacArthur Boulevard. The property’s unsurpassed location in the heart of the Jamboree Road corridor in Newport Beach makes Uptown Newport ideal for redevelopment into high density mixed use residential development.

Acquisition Summary:
Shopoff Land Fund, in a partnership with DRA Advisors, a New York based private equity firm, purchased the property from Conexant Systems, Inc. for $23.5 million in December 2010, which equates to $940,000 per acre. We were successful in negotiating an extended escrow that enabled us to resolve several key issues during due diligence and secure entitlements that allocate 1,244 residential units to the property prior to closing. Pre-acquisition due diligence efforts consisted of the following milestones:

Business Plan:
Shopoff Realty Investments is now proceeding with site development activities for the first phase of development in Uptown Newport, and will serve as the master developer for Phase 1. Shopoff Realty Investments will grade the site and develop the streets, utilities, a 1-acre public park, and the master landscaping for Phase 1. Our joint venture partnership with The Picerne Group will build and own 493 apartment units in two phases, along the Jamboree Road frontage. Shopoff Realty Investments is currently in the process of selling a 2.5-acre parcel within the first phase that is planned for a seniors project.

Shopoff Realty Investments, through an affiliate, retained ownership of the balance of the Uptown Newport project. This site will be the second phase of development and contains 12.04 acres, approved for development of up to 564 units. The property is currently improved with 323,357 SF of manufacturing and office space leased to TowerJazz.

Shopoff Management, Inc., an affiliate of Shopoff Realty Investments, managed the property since the original site acquisition in December of 2010 and will continue to serve as the property manager for the remaining leases in the Phase 2 portion of the property. During the past three years, Shopoff Management, Inc. successfully leased vacant spaces and managed ongoing building operations.

Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.

 

Springbrook and Spring Mountain Ranch

In developing Spring Mountain Ranch and Springbrook Estates, Shopoff Realty Investments created what is destined to become one of Riverside County’s premier master-planned communities. Together, these two adjoining projects include over 2,100 homes and associated amenities. Although acquired at different times and processed separately, they ultimately required complementary planning efforts.

Spring Mountain Ranch was to be a single-family residential master-planned community consisting of nearly 1,500 lots on roughly 435 acres of citrus groves. Farmed for almost a century, these citrus groves were some of the first put into production by Sunkist.

As part of the approval process, we worked diligently with neighborhood groups, the environmental community, neighboring cities, and state and federal regulatory agencies to engineer a community that would meet or exceed all of their expectations. Among the first approvals received were a specific plan, six tentative tract maps, an environmental impact report, a zone change and a general plan amendment. That accomplished, we were well on our way to setting the standard for excellence in the area’s first move-up master-planned community.

We faced one additional challenge: obtain sanitary sewage treatment service for the development. Through expert and persistent technical studies and political negotiations, we secured a commitment from the city of Riverside to grant us sufficient capacity in their wastewater treatment facility.

Prior to obtaining all approvals for Spring Mountain Ranch, another group of grove owners approached us about purchasing their citrus properties as well. After discussing development alternatives for the surrounding community and other areas with Riverside County Supervisors and administrators, we determined that there was a need for a greater variety of residential products, and most importantly, a regional recreation park. In just over a year, we consolidated 16 parcels of land totaling 184 acres immediately adjacent to Spring Mountain Ranch to address this need. We then mapped the property to provide 650 single-family residential lots, 16 acres of pocket and linear passive parks, and a 34-acre active recreation facility with baseball/softball diamonds, soccer fields, basketball and tennis courts, picnic areas, and snack bar and restroom facilities. The product of this second planning effort, Springbrook Estates, included lots ranging from 4,000 to 5,500 square feet. These smaller lots complemented the larger 7,200 to 10,000 square-foot lots in Spring Mountain Ranch. The recreation park was sized to address the needs of both Spring Mountain Ranch and Springbrook Estates, as well as the rest of the Highgrove area.

The Spring Mountain Ranch project, except for 11+ acres of commercially zoned land, was sold to RWR Homes in 2004 for 53 million dollars. Springbrook Estates was sold to Centex Homes in 2005 and 2006 for 72 million dollars.

Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.

 

Ramsgate

In January of 1998, Shopoff Realty Investments acquired 1,190 acres in Lake Elsinore, California through a partnership with Credit Suisse First Boston. The project was approved for over 3,000 residential units, along with commercial sites, school sites and parks. The partnership envisioned revising the existing maps and re-selling two to three years later, after we had enhanced the value.

Shortly after our purchase we encountered over 60 pairs of federally listed threatened birds known as the Coastal California Gnatcatcher, which required us to alter our plans. Over the course of several years of negotiation, we successfully obtained approvals on four revised tentative tract maps covering the 411-acre portion of the project northwest of Wasson Canyon. We had revised the four maps to provide for 1,013 lots, a school site, an apartment site, a community park and a commercial site.

In November of 2003, we sold the residential lots, school site and park site to Centex Homes, while retaining the apartment site and the commercial site. Centex is projected to sell the last of the 1,013 houses constructed on the lots sold to them by the end of 2007. In September of 2004, we sold the apartment site to Fairfield Residential, which completed the construction of 352 approved apartment units in 2006 and expects full occupancy in 2007. In late 2006, we sold a 127 lot map to MBK Homes, which followed our Specific Plan Amendment changing the commercial site to a single family residential site. MBK Homes plans to commence construction of the 127 unit private community in 2007.

As part of our negotiations with the U.S. Fish and Wildlife Service and other regulatory agencies, we agreed to sell 600 acres of the project lying southeast of Wasson Canyon deemed an occupied habitat for the Gnatcatcher. Although this sale was well below the value of residential land, we were still able to generate a profit and support Riverside County in the creation of its Multi-Species Habitat Conservation Plan. In addition, the negotiation allowed us clearance to process 296 lots on the remainder of the project. Our team also worked with the Riverside County Transportation Commission (RCTC) to expedite the widening and realignment of the adjacent Highway 74. The negotiation allowed us to maximize our development areas, as well as obtain several traffic signals to ensure quality access to the project. Additionally, we were able to install infrastructure at the same time as the RCTC performed their work, thus saving both time and money and ultimately yielding a greater sales price.

Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.

 

Villages at Wasson Canyon

At Shopoff Realty Investments, we often have to exhibit great patience to achieve our desired results. We couple this with a reputation for skillful execution. Our acquisition of the Villages at Wasson Canyon is an example.

Shopoff Realty Investments had previously looked at this land, which was adjacent to other Shopoff Realty Investments holdings and comprised of three expired tract maps encumbered by millions of dollars in delinquent property taxes and a defaulted assessment district. Due to market conditions, we decided not to pursue it further.

Circumstances changed in 2003 when the seller contacted us after having been through several failed sales contracts.

We moved quickly, acquiring only the most desired section of the expired maps, plus some additional acreage not included in the original offering. We then negotiated a settlement with the city of Lake Elsinore and the County of Riverside regarding the defaulted assessment district’s property taxes. This was a crucial element necessary for a successful project.

Once we had the tax issue resolved and the acquisition underway, we began to process a new map of the property. The new map yielded an increase of 20 lots and allowed for a total proposed development of 191 home sites. Due to the city’s desire to hasten the disposition of the assessment district’s property tax issue, we were able to obtain expedited processing for the project and received approval within one year of acquisition of the site.

The 191 lot Villages at Wasson Canyon first phase was sold to Lennar Homes in 2005. The site improvements were completed in 2006 along with the first home sales.

Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.

 

1994 Land Fund II, Dallas I, LP

The Resolution Trust Corporation (RTC) auctioned off a loan pool consisting of 37 defaulted land loans with a book value of $55 million. These loans were secured by land in five states and comprised over 6,000 acres of land.

In a very short period of time William A. Shopoff’s team of specialists underwrote and evaluated the risk of the assets in the loan pool. His team set about winning the bid for the pool of loans for each asset within the land pool.

Based on the due diligence performed in evaluating these assets and determination of a preferred exit strategy for each asset, we began negotiating the disposition of individual loads that were acquired. Part of the plan was settling some of the larger defaults, as well as foreclosures and sale of the land on a few of these properties. This was done rapidly and relentlessly. The RTC had not pursued collection on many of these loans for over a year, whereas William’s team resolved many of the challenges in a matter of months. Within 12 months all of our investors’ capital had been returned through the precise execution of the plans for each asset.

Over the course of the next decade, our team continued to work on maximizing value, having to create numerous exit strategies ranging from subdivision of parcels, re-zoning and creating joint ventures.

This long-range plan resulted in the foreclosure or sale of the property or settlement of the debt on all parcels and generated a return in excess of proforma expectations.

Investing in Shopoff Realty Investments limited partnerships involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks. The past performance of any of Shopoff Realty Investments' Limited Partnerships is no guarantee of future results. View Risk Factors.