We spoke with Placek about the difficulty of sourcing value-add properties in this market and what Shopoff looks for in the properties it acquires.

GlobeSt.com: How difficult is it to source value-add properties in markets like Orange County

Placek: It has become difficult over the years to source strategic real estate investments in Orange County. We find it helps to have unique, thorough knowledge of the site, including facts around tenants, market statistics, maintenance and other relevant information. We also find that having an experienced team that is responsive and has the ability to transact quickly gives us opportunity to close more deals.

GlobeSt.com: What challenges do you encounter in these acquisitions and how do you overcome them?

Placek: The biggest challenge we find by far is timing. Our investment specialists work diligently to address property fundamentals throughout due diligence and quickly and effectively address any potential issues. We have established a reputation locally for being experienced and having the expertise to work through complex situations, as well as being able to analyze and acquire diverse property types. Being known for meeting complex challenges has helped to find and close off-market deals.

GlobeSt.com: What do you look for in the value-add properties you acquire?

Placek: Every deal is different. We seek residential developments and commercial properties, land opportunities and mortgage products, each designed to build potential long-term value. We will consider diverse situations, such as a lease-up play, mismanaged property or one that is under-capitalized and in need of improvement. We will also consider joint ventures with property owners.

GlobeSt.com: What else should our readers know about this particular transaction?

Placek: We find that this particular neighborhood of Newport Beach is on the rise. There has been an influx of residential development, which has reduced the class-B office supply. This development bodes very well for the office owners in this area. Shopoff has been a premier owner and developer in this area, and we expect the neighborhood to continue to improve considerably in the coming years.

Placek: “The biggest challenge we find by far is timing.”

NEWPORT BEACH, CA—It has become difficult over the years to source strategic real estate investments in the Orange County market, but it helps to have unique, thorough knowledge of the site and a few other arrows in your quiver, Shopoff Realty Investments' EVP Dave Placek tells GlobeSt.com. The firm, a national manager of opportunistic and value-add real estate investments, recently acquired a three-story, 44,434-square-foot office building at 4440 Von Karman Ave. here, for $15.4 million from what Real Capital Analytics reports was Canopi LLC.

Placek says his firm is “employing our strategic plan to actively lease up the property and to increase rents that are currently below market rates. With high market occupancy, upward momentum on rental rates and an attractive location, this asset is well positioned to be stabilized in the near future.”

The firm's CEO William Shopoff adds, “This is a rare opportunity to acquire a value-add property in a very exclusive location in coastal Orange County.”

Featuring lush landscaping, an elevator and abundant common parking, the property is leased by CommerceWest Bank, DynTek and Johnson Attorneys Group. The building was 44% vacant at the time of acquisition in a market with an 8.5% vacancy rate and rents forecasted to grow 33.5% over the next five years.

We spoke with Placek about the difficulty of sourcing value-add properties in this market and what Shopoff looks for in the properties it acquires.

GlobeSt.com: How difficult is it to source value-add properties in markets like Orange County

Placek: It has become difficult over the years to source strategic real estate investments in Orange County. We find it helps to have unique, thorough knowledge of the site, including facts around tenants, market statistics, maintenance and other relevant information. We also find that having an experienced team that is responsive and has the ability to transact quickly gives us opportunity to close more deals.

GlobeSt.com: What challenges do you encounter in these acquisitions and how do you overcome them?

Placek: The biggest challenge we find by far is timing. Our investment specialists work diligently to address property fundamentals throughout due diligence and quickly and effectively address any potential issues. We have established a reputation locally for being experienced and having the expertise to work through complex situations, as well as being able to analyze and acquire diverse property types. Being known for meeting complex challenges has helped to find and close off-market deals.

GlobeSt.com: What do you look for in the value-add properties you acquire?

Placek: Every deal is different. We seek residential developments and commercial properties, land opportunities and mortgage products, each designed to build potential long-term value. We will consider diverse situations, such as a lease-up play, mismanaged property or one that is under-capitalized and in need of improvement. We will also consider joint ventures with property owners.

GlobeSt.com: What else should our readers know about this particular transaction?

Placek: We find that this particular neighborhood of Newport Beach is on the rise. There has been an influx of residential development, which has reduced the class-B office supply. This development bodes very well for the office owners in this area. Shopoff has been a premier owner and developer in this area, and we expect the neighborhood to continue to improve considerably in the coming years.