OC Business Journal

Shopoff Realty Investments Celebrates 30-Year Milestone

Building and maintaining a successful business for 30 years in any industry can be challenging, and navigating the up and down cycles of the commercial real estate market can present additional obstacles. Irvine, Calif.-based Shopoff Realty Investments has not only persevered for more than three decades, but has thrived and built a world-class reputation. The company has grown, matured and is tackling larger scale projects, all while creating accretive value for its investors, employees and local communities.

Founded by Bill and Cindy Shopoff in 1992, Shopoff Realty Investments specializes in transforming underutilized, undervalued or mismanaged real estate into more attractive and valuable assets. “Our focus, and frankly where we excel, is to take challenging assets and figure out how to extract the highest value from them. Where others might see a vacant piece of land or blighted property, we see homes and apartments where people can raise their families,” says Bill Shopoff, president and CEO of Shopoff Realty Investments.

Over the past three decades, Shopoff Realty Investments has accumulated an impressive track record of results. The firm has been responsible for more than 1,000 full cycle assets where assets were purchased, strategies were successfully executed and then assets were sold. Senior management has entitled more than 21 million square feet of commercial property and 28,000+ residential lots/units, managed more than 320 public and private offerings and participated in nearly 8,000 real estate acquisition, lease and development transactions with an aggregate value in excess of $27 billion.

“I would say the secret to the success of Shopoff Realty Investments is tenacity and knowing that if we want to do it, we can do it,” says Cindy Shopoff, executive vice president of operations. “That means not stopping or walking away if a project runs into delays or setbacks. The company has learned to find a way to solve problems or pivot to find alternative solutions,” she adds.

Recognizing opportunities

The bedrock of the business for the past 30 years has been the ability to see opportunities to create value in distressed assets and challenging situations. Founder Bill Shopoff got an early taste for real estate deal-making. As a business student at the University of Texas at Austin in the early 1980s, he decided to get a side job and obtained a real estate license, and in between classes, he started selling homes. After earning his MBA in finance and accounting, he recognized that the job offers he was getting weren’t nearly as good as the real estate commissions he was making. He also liked being his own boss.

Bill and Cindy founded the original company, Asset Recovery Fund, in 1992, with an initial focus on buying distressed debt from the Resolution Trust Corporation (RTC). “We figured out ways to do things that others couldn’t really understand,

and that has carried forth to this day,” says Shopoff. The company has grown and evolved and focuses on a variety of property sectors, including multifamily, retail, office, industrial, land and hospitality.

Today, Shopoff Realty Investments is actively pursuing investment opportunities across the U.S. with an emphasis on the Western states. The company’s three main focus areas are the entitlement and repurposing of land, repositioning of commercial assets, and new development. “Our team pursues the highest and best use for all our properties, focusing on enhancing communities and neighborhoods, fostering long-term partnerships and producing event-driven appreciation. This strategy has allowed us to thrive through numerous market cycles,” says Bill Shopoff.

Focus on people

Bill Shopoff is quick to credit the people around him for the company’s success, starting with his wife Cindy. Over the past 35-plus years, the two have been both life and business partners. “She is really the glue that binds the company together. She plays a key mentorship role, understands what’s going on with people, and has had great vision for the business,” says Bill Shopoff.

Shopoff also recognizes that he doesn’t need to be the smartest guy in the room. “I made a decision several years ago – after really trying to be that person – that if I wanted the company to grow and prosper and be the best company it could be, I needed to hire smarter people than I was and embrace that intelligence,” he says.

“Intrinsically, Shopoff Realty Investments is a real estate company, but it’s a company of exceptional people who know how to execute on strategies and deliver results,” adds Daniel Oschin, Shopoff Realty Investments’ chief strategy officer. “Regardless of the difficulties we face in a situation, we do a great job of finding productive solutions. We’re a solutions-oriented company for the benefit of everyone involved,” he says.

The Shopoffs have not only built a strong company, but a strong team and culture where people matter, whether it is employees, investors or the people within the communities where our properties are located. “You can see a lot about a person or a company by how they treat people when things are tough. One of the things I can say about Shopoff is that in up and down markets we always communicate, we always work with people, and we find a way to make things successful. That is a cornerstone of what we do,” says Oschin.

Adding value to communities

A core part of the mission of Shopoff Realty Investments is to create value for the communities it serves. The company works to make sure its goals for a project align with the overall city plan and residents’ needs, working closely with each municipality every step of the way. This close collaboration with communities allows the company to have a positive impact, such as removing dilapidated, unused or obsolete buildings, creating new parks and open space and increasing city tax revenue.

One of the many projects that highlights that commitment is the Uptown Newport project. Shopoff Realty Investments acquired 25 acres in Newport Beach that was originally on the periphery of a business district, with mainly office and industrial uses. The company brought the property through a complex

entitlement process and received city approval in 2013 to build 1,244 residential units along with 11,500 square feet of retail space. Shopoff Realty Investments also built a 1-acre park at its own cost, which they dedicated to the community, and has plans to build an additional park in phase two of development. Shopoff had the vision to transform this underutilized and unattractive acreage into a thriving, beautiful, mixed-use residential village that would better serve the city as the demand for housing in California far outpaces supply.

“Over the past 30 years, one of the accomplishments that I’m proudest of is creating tens of thousands of residential lots and units across the state of California, which as many people know, has a serious shortage of housing,” says Cindy Shopoff.

Building for the future

One of the important lessons Bill Shopoff has learned over the years is that every down cycle is eventually followed by a recovery. “So, when others are a bit fearful and move to the sidelines, we often see it as an ideal time to be in motion and active in the investment market,” says Shopoff. “Another important aspect is understanding the long-term nature of the real estate business. There is always going to be some ebb and flow to market cycles, but every cycle is inherently different. Being able to understand changes in the marketplace is key to identifying investment opportunities. When there are downturns in the market, there are definite opportunities. You just have to be prepared to act on them and have the expertise to execute on them,” says Shopoff.

It is that strategy that has led Shopoff Realty Investments to one of its most visible projects to date. During the height of COVID-19, many investors were wary of making new investments in hotels, let alone hotels in major tourist destinations, but Shopoff saw an opportunity to make a big move. The company acquired a prime 5.25-acre site on the Las Vegas strip along with joint venture partner Contour Real Estate in February 2020 and is moving forward with its Dream Las Vegas development project. Shopoff and Contour have completed the preliminary design for the Dream Las Vegas development project, and in October 2021 they secured the necessary entitlements to build a 20-story, fullservice resort hotel. The project will feature 525 rooms and suites, gaming, dining and nightlife venues, a pool deck, retail experiences, meeting rooms and a fitness center. This project, branded and managed by the Dream Hotel Group, is expected to break ground in June of this year and is set to be completed in the fourth quarter of 2024.

“Looking back over the past 30 years, I’m most proud of the team we have at Shopoff. It’s the best team we have ever had. I’m also proud of the things we are doing right now, trying to innovate investment products and build communities,” says Shopoff. “I think that’s the thing I like the most about my job, either taking something that’s broken and fixing it, and adding value to the community that way, or taking land from scratch and building a community.”

1992 to present as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group). William Shopoff is the founder and principal of all these entities. Performance has varied in this time frame, with certain offerings generating losses that are detailed in the PPM track record. Past Performance is not indicative of future results.

This is not an offering to buy or sell any securities. Such offer may only be made through the offerings memorandum to qualified purchasers. Any investment in Shopoff Realty Investmentsprograms involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. There is no assurance that any strategy will succeed to meet its investment objectives. The performance of this asset is not indicative of future results of other assets. Securities offered through Shopoff Securities, Inc. member FINRA/SIPC, 18565 Jamboree Road, Suite 200, Irvine, CA 92612, (844) 4-SHOPOFF

SHOPOFF REALTY INVESTMENTS

en-us

2022-05-23T07:00:00.0000000Z

2022-05-23T07:00:00.0000000Z

https://ocbusinessjournal.pressreader.com/article/282273848975466

LABJ