Shopoff pursues the highest and best use for all our properties, seeking to maximize value by focusing on the entitlement of land and the repositioning of commercial assets, where it believes it can best control the outcome.1

TARGET ASSET CLASSES2

Office

Land

Industrial

Multifamily

Retail

VALUE CREATION PROCESS1

Shopoff draws upon its years of experience and wide relationship network to implement its strategy and create value.

create value diagram on strategy page shopoff

HOW WE DEPLOY OUR VALUE CREATION STRATEGY5

When investing in real estate, Shopoff implements several different techniques to create value, including:

Repositioning
Modifying an asset’s current use to better fit current market demands. For example, if a portion of the property is a vacant former big box retailer, we can segment the space into several smaller retail spaces.
Rehabilitation
Making physical improvements to the property. This allows Shopoff the opportunity to elevate a property’s status in the market by improving physical defects and making capital improvements.
Recapitalization
Assets that are financially unstable can often provide Shopoff the opportunity to adjust the in-place financing, achieving better loan terms or a different capital mix, which may make the property more stable overall.
Entitlements
Obtaining land use approvals on raw land that allow a property to be developed in a specific manner, and ultimately sold to a builder.6
Repurposing
Changing to a higher and better use through re-entitlement or other methods. For example, re-entitling land with existing infrastructure will allow for redevelopment and sale to a builder.
Development

EXAMPLES OF EXECUTED STRATEGIES

Entitlement & Repurposing of Land

Development

Repositioning

This multi-disciplined approach enables Shopoff to uncover opportunities that others may not capitalize on, or even recognize.

1. There is no assurance that this strategy will succeed to meet its investment objectives.

2. These are examples of properties Shopoff may invest in and do not define Shopoff’s full scope for investments. The company may invest in other types of real estate assets beyond the above mentioned list.

3. Sources may include corporations, institutions, organizations, distressed, owners, and others.

4. Repurposing assets include, but is not 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.

5. The strategies are primarily, but not exclusively, utilized for raw land, improved land with existing infrastructure, assets that have existing commercial use, or assets that have a combination of commercial and other components. These strategies add value to those assets achieving their highest and best use, at which time they will be sold.

6. 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.