Shopoff Realty Investments Buys Value-Add Retail Center near Reno
Shopoff Realty Investments, a private investment firm that sponsors or co-sponsors alternative investment offerings, purchased the Iron Horse Shopping Center in the Reno suburb of Sparks, Nevada through a lender REO. The purchase price was not disclosed.
The 186,000-square-foot shopping center is currently 33 percent occupied, dramatically lower than the local market’s average occupancy rate of 84 percent. Tenants include Dollar General, Subway, Payless Shoes, Sizzler, Jack in the Box, El Pollo Loco, as well as a number of local businesses. The center is anchored by Save-Mart, which was not part of the purchase.
“We believe this value-add acquisition provides a significant opportunity to realize outsized investment gains,” said William Shopoff, chief executive officer of Shopoff Realty Investments. “This is an under-utilized space in a growing market – an ideal combination for our experienced team of turnaround experts.”
Shopoff has committed more than one million dollars to improve and enhance the appeal of the property, strengthening the opportunity to increase overall revenue and lease-up an additional 100,000-square-foot vacant “big box” space that was included in the purchase.
David Placek, Shopoff Realty Investments executive vice president, added, “Our strategy is always to uncover hidden or unrealized potential. With this asset, we were able to capture a well-positioned center, at a great price based on current revenue. However, what makes this property really exciting is the upside to be captured by leasing the existing inline vacancy and the 100,000 square foot box.”
Sparks has experienced rapid growth fueled by tech expansion, including Tesla’s Giga-Factory, an Amazon logistics center, Apple’s iCloud data center site, a Petco distribution center and other biofuel and data centers.
Shopoff Realty Investments has a 24-year history of more than 100 programs and 529 investments, of which more than 488 have gone full cycle with an average holding period of 2.7 years. Shopoff Realty Investments and its executive leadership have completed 5,000- plus real estate transactions, including the acquisition, management, entitlement and development of more than 10,000 parcels and lots, 50,000 multifamily units, and 5 million square feet of commercial properties, with an aggregate value in excess of $4 billion.
