Exclusive: Shopoff Realty Investments Acquires Properties in California and Minnesota

Shopoff Realty Investments has acquired a 261,805-square-foot office and manufacturing building in the Minneapolis suburb of Coon Rapids, MN for $14 million. The acquisition was capitalized in a tenant-in-common structure through co-investments from two Shopoff-affiliated private funds, and a private third party 1031 exchange investor.

“The property is in an industrial submarket of Minneapolis with limited vacancy and stable rental rates,” said William Shopoff, chief executive officer of Shopoff Realty Investments. “While it is currently 100 percent occupied, we have formulated a strategy to increase the income and value of the asset by marketing and leasing an additional 86,000-square-foot building which can be developed on the existing property.”

The property is currently leased to two credit-grade tenants, Honeywell (NYSE: HON), a Fortune 100 company focused on global technology and aircraft parts, and MEDRAD, a wholly owned subsidiary of medical company Boston Scientific (NYSE: BSX).

“The Evergreen property is expected to benefit greatly from the occupancy of the current tenants, the potential for increased income based on rents that are currently below market rates, as well as the proposed building expansion, which will enable additional industrial and manufacturing tenants to be housed in this business area and will create additional future value,” said David Placek, executive vice president of Shopoff Realty Investments’ commercial property division.

Earlier this week, Shopoff announced that they have also acquired Los Alisos Village, a 31,400-square-foot community retail property in Mission Viejo, Calif., for $11.5 million. The acquisition was capitalized through co-investments from two Shopoff-affiliated funds.

Los Alisos Village, constructed in 1982 and situated on approximately 4.5 acres, is currently 91 percent leased, with tenants including Auto Zone, Baskin Robbins, Taco Mesa and a number of other local businesses, some with leases dating back to the early 1990’s. As part of its value-add strategy, Shopoff plans a complete renovation of the exterior of the property, which should enhance visibility of the center and its tenants. When the improvements and repositioning are substantially completed, Shopoff intends to sell the asset to a buyer of stabilized real estate.