Shopoff Realty Buys Southern California Office Campus
- Jan 06, 2021
Shopoff Realty Investments has enhanced its diverse commercial real estate portfolio with the acquisition of a three-building creative office campus in Goleta, Calif., just outside Santa Barbara. In partnership with Praelium Commercial Real Estate, Shopoff Realty purchased the fully leased Castilian Technical Center from Montana Avenue Capital Partners LLC, adding an aggregate 165,900 square feet to its holdings.
Neither Shopoff Realty nor MAC has publicly disclosed the price tag attached to Castilian. However, the property last changed hands only one year ago, when MAC acquired the asset for just over $35.7 million. Carrying the addresses of 50, 70 and 90 Castillo Drive, the campus occupies nearly 11 acres roughly 2 miles from the University of California Santa Barbara, in an area that has evolved into a vibrant engineering and technology corridor. “We believe the office market will continue to be robust in this market even with the impact of work-from-home,” Bill Shopoff, president & CEO of Shopoff Realty Investments, told Commercial Property Executive. “The market has little vacancy and there is little to no new competition in the pipeline. We believe the proximity to UC Santa Barbara is one of the driving forces for this market.”
Originally developed between 1997 and 2000, Castilian’s buildings range in size from approximately 36,000 to 86,000 square feet. The complex recently underwent a complete renovation and is being further enhanced through tenant improvements at the hands of tech firm AppFolio, which occupies the entire campus under an 11-year triple net lease agreement.
New Year, new opportunities
The Castilian transaction is projected to be one of many for Shopoff Realty in 2021, as the company is planning a highly acquisitive year ahead, with more than $100 million of new purchases already outlined for the first quarter. “Our expectation would be to acquire $300 to $500 million in the coming year, but this is completely dependent on the willingness of sellers to meet the market,” said Shopoff. “We believe there are still owners who are under pressure and expect some opportunistically priced assets to come to the market.”
Shopoff Realty’s pandemic-era acquisition strategy in 2020 centered on land for multifamily residential development, but the New Year has brought new and expanded plans. In addition to the single-tenant office sector, the company is eyeing distressed retail and hospitality opportunities. “We believe these will provide attractive targets for 2021,” Shopoff added.