IRVINE, CA—The real estate investment landscape is undergoing significant evolution, marked by the emergence of innovative solutions. One such solution involves the revitalization of distressed retail spaces into mixed-use residential properties—a tale that seamlessly merges two major real estate asset classes while promising appealing investment returns. Not only does this approach tackle the housing shortage, but it also breathes new life into vacant or underutilized retail properties. We recently caught up with Bill Shopoff, founder and CEO of Irvine, CA-based Shopoff Realty Investments, for a Q&A on the subject. Shopoff has three projects converting retail into housing and mixed use underway and a fourth planned project, all in the highly competitive California market.

GlobeSt.com: Can you tell me what inspired you to venture into redeveloping distressed retail spaces into mixed-use residential properties and maybe a bit about the projects in particular or what stands out about them?

Bill Shopoff: Much of our development takes place in coastal California, where most of the land has already been developed. We need to look toward redevelopment opportunities. Retail sites provide an interesting option given that they usually have sufficient scale, utilities in place and good access from adjacent roads. Additionally, the impacts of building residential are generally less than the existing retail condition and hence make getting approvals more straightforward.