Shopoff Properties Trust, Inc.

Transcription

1 Shopoff Properties Trust, Inc. Property Report and Financial Summary

2 Fund Overview Shopoff Properties Trust, Inc. and its consolidated subsidiaries currently own land planned for residential and retail development in Lake Elsinore, California, Buckeye, Arizona and Parker, Colorado (with a venture partner). In addition, it owns mitigation land in Chino, California and a 20% joint venture interest in entitled residential lots in Lake Elsinore, California. Activity for the Fund in the First Quarter of 2015: The Advisor has entered into a contract with a prospective buyer to sell the 6.11-acre property in Lake Elsinore. The sale of the asset occurred on April 10, Net proceeds of approximately $980,000 were used to pay existing debt maturities. The Company has refinanced debt on the Buckeye, Arizona asset to extend the debt maturity through July The Advisor continues to monitor for appropriate timing to move forward with sales or entitlement activities on portfolio assets. Terms for a sale of the Parker, CO asset have been agreed to, and the purchase agreement for the sale of the asset at $9 million is being finalized. This sale is anticipated to close in the Fourth Quarter 2015 after Buyer s site plan approval. Fund Valuation: On May 21, 2014, the Company s board of directors approved a fully diluted estimated value per share of the Company s common stock of $10.31 based on an equal weighted average of (i) management s opinion of the estimated values of the Company s assets less liabilities, or adjusted net asset value method, and (ii) management s opinion of the present value of future expected cash flows of the Company, discounted for risk, or discounted cash flow method, divided by the actual and expected number of shares outstanding for the fully diluted estimated value per share, all as of December 31, Based on expected time frames for selling each of the Company s assets, which used current, critical assumptions, in May management estimated that the potential per share distributions derived from sales of the Company s assets, after payments of liabilities would be approximately $ However, these estimated amounts could be significantly different if management s assumptions are incorrect. Updates on individual assets are provided on the following pages. SHOPOFF PROPERTIES TRUST Investment Profile Fund: SHOPOFF PROPERTIES TRUST, INC. Assets Under Control: The Company has acquired either in whole or in part, or has entered into contracts to acquire, the following: 200 acres in Buckeye, Arizona with entitlements for 739 residential lots (100% ownership) Two parcels totaling 1.86 acres planned for commercial development in Lake Elsinore, California (100% ownership) 400 acres of open space mitigation land in Chino, California (100% ownership) 83.9 acres in Lake Elsinore, California with entitlements for 355 residential lots (20% ownership interest) acres in Lake Elsinore, California planned for residential development (100% ownership) 46.5 acres in Parker, Colorado, zoned for up to 851 apartment units and 40,000 square feet of retail space (37% ownership interest) A loan in the amount of $600,000 secured by personal guarantees from four individuals. The loan is currently in default status with a total amount due under the note, including default interest at 19% and related legal costs, of approximately $1,478,000, carried on the financial statements at approximately $344,000. Investments - Sold: 60 acres in Riverside County, California planned for 244 residential lots and 225 attached condominium units sold in Q finished residential lots in Lake Elsinore, California sold in Q acres in Riverside, California planned for 543 residential lots sold in Q acres in Lake Elsinore, California planned for residential development (100% ownership) - sold in Q Capital: $18,234,000 in total capital was raised; Shopoff Properties Trust is closed to new investors. Contact: Steve Shopoff (214) ; sshopoff@shopoff.com

3 Buckeye 200 Buckeye, Arizona Buckeye 200 has Preliminary Plat approval for 739 single family lots on 200 acres in the Town of Buckeye, Arizona. The project was approved by the Town of Buckeye in 2005 and the entitlements are vested in the Town of Buckeye. Final plat maps are in plan check. Preliminary grading plans and improvement plans have been prepared for the project. Water service is provided by Global Water pursuant to a water facilities line extension agreement with Global Water. Water transmission mains and storage reservoirs are there to serve the property have been constructed and dedicated to Global Water. A total of $2.6 million ($3,500/unit) in water fees have been pre-paid for the construction of water supply infrastructure. Sewer service is provided by The Town of Buckeye. Sewer collection lines and infrastructure, including an expansion of the Beloat Wastewater Treatment Plant (WWTP) has been constructed and dedicated. The sewer infrastructure improvements were funded by the Watson Road Community Facilities District and will serve the Desert Moon Estates project and other projects. SHOPOFF PROPERTIES TRUST The property is located within the Town of Buckeye, east of the intersection of Yuma Road and Watson Road, approximately ½ mile south of the 10 Freeway. The Buckeye submarket experienced strong growth in the mid 2000s, and is a desirable location for residential and commercial development. The project is conveniently located in close proximity to the 10 Freeway, area schools, and retail centers. The Sundance Towne Center and Buckeye Marketplace are located directly northeast of the project. The surrounding area includes existing single family development to the north, the Watson Estates master planned community to the east, vacant agricultural land to the south and a mobile home park to the east. The Company has refinanced debt on the Buckeye, Arizona asset to extend the debt maturity through July The Coffman Property consists of 6.11 acres of land zoned for mixed use multi-family residential uses, and is located in the City of Lake Elsinore, California. The Coffman property is planned for approximately 110 multi-family residential units. The Coffman property is located a ½-mile east of I-15 Freeway via Dexter Avenue and 3 rd Street. The surrounding area has experienced significant growth, and includes newer homes in the Rosetta Canyon and Rosetta Hills communities, a new community park, retail shopping, and vacant land. The Company entered into contract to sell the Coffman property for $1,050,000. The closing occurred on April 10, Net proceeds were used to pay debt maturities. Coffman Lake Elsinore, California

4 SHOPOFF PROPERTIES TRUST Chino Hills Chino Hills, California The Chino Hills property consists of 400 acres of undeveloped land located in the City of Chino, California. The property is undeveloped and is contiguous to The Chino Hills State Park to the south and west. This property presents an opportunity for mitigation in a highly visible area along the 91 and 71 Freeways. The property provides a connectivity and habitat for wildlife movement; enhances natural lands contiguity to The Chino Hills State Park; offers scenic views; and provides trail access that can enhance access to The Chino Hills State Park. This property is located approximately one mile north of Riverside Freeway (91) and one mile west of the Corona Expressway (71) in the City of Chino Hills in the County of San Bernardino. The Advisor is currently seeking buyers of the property for use as open space mitigation land. Tuscany Valley & Tuscany Crest City of Lake Elsinore, California Shopoff Properties Trust owns a 20% interest in Tuscany Valley and Tuscany Crest, which are approved for a total of 355 mapped lots on acres, with 5,000 square foot minimum lots. Entitlements include an approved Specific Plan (Ramsgate Specific Plan), Development Agreement and approved Tentative Maps (TTM & TTM 33725). Grading plans have been prepared and are in plan check. Improvement plans and final maps have not been prepared. Tuscany Valley and Tuscany Crest are located in the City of Lake Elsinore approximately 6.5 miles east of I-15 Freeway via Summerhill Drive and Greenwald Avenue through the Tuscany Hills Community. The surrounding area includes new residential homes in the Tuscany Hills Community by Centex Homes, existing single family homes, and open space habitat conservation areas..

5 SHOPOFF PROPERTIES TRUST Meadowbrook is a proposed residential subdivision consisting of approximately 364 single-family lots, neighborhood parks and open space on acres. Meadowbrook is currently unentitled and vacant, and requires a specific plan, general plan amendment, change of zone, and tentative map approval. Processing of entitlements has been initiated, but no approvals have been received to date. Meadowbrook is located in the Meadowbrook area of Unincorporated Riverside County, just east of the City of Lake Elsinore, and approximately 5 miles east of I-15 Freeway via State Highway 74 and Greenwald Avenue Meadowbrook County of Riverside, California SR 74 Commercial Parcels The Property consists of 1.86 acres on two parcels of land with frontage on State Route 74 (Central Avenue) at Rosetta Canyon Drive in the City of Lake Elsinore. The site is conveniently located 1-mile from the 15 Freeway at the Central Avenue exit ramp. Utilities including sewer and water are available at the property. The surrounding area has experienced significant growth, and includes newer homes in the master-planned communities of Rosetta Canyon and Rosetta Hills, a retail shopping center with a Lowe s, Costco, and Pet Smart, and a regional outlet mall. The SR 74 commercial parcels are currently being marketed for sale.

6 Shopoff Land Fund I, L.P. and Shopoff Properties Trust, Inc. jointly acquired the 46.5 acre Vantage Point parcel in the Town of Parker, Colorado, which is situated in the southeastern portion of the Denver metropolitan area. Shopoff Realty Investments has successfully secured approvals to rezone the property for multifamily units and commercial use. A Minor Development Plat (non-construction) and a PD Amendment were approved by Parker Town Council on November 17, The MDP legally created separate residential and retail parcels. The PD Amendment relocated and expanded the retail acreage and reduced the multifamily to 851 units. Currently, the entire 46.5 acre property is under negotiation with a nationally recognized apartment developer for sale at $9 million. It is expected that a sale on this site will occur in the Fourth Quarter SHOPOFF PROPERTIES TRUST Vantage Point Parker, Colorado Mesquite Loan The Mesquite loan was originated as a $600,000 second position real estate note receivable from Mesquite Venture I, LLC. The loan was secured by real property situated in the City of Mesquite, Nevada which was foreclosed by the first lien holder. The note is also secured by personal guarantees from four individuals. The loan is currently in default status with a total amount due under the note, including default interest at 19% and related legal costs, of approximately $1,478,000, carried on the financial statements at approximately $344,000. While management is continuing to pursue all options for collection from the personal guarantees, and believes over time collection of the carrying value will be achieved, there can be no assurance that this will occur or when it may occur.

7 SHOPOFF PROPERTIES TRUST Underwood City of Menifee, California (SOLD in Q2 2011) The Underwood asset has tentative map approval for 543 single family lots on 225 acres, and is located in the City of Menifee, California. The asset was sold in May 2011 for $4,500,000. for a profit of $2,129,000. Winchester Hills Riverside County, California (SOLD in Q1 2009) The Winchester Hills asses is located Winchester Valley area of southwest Riverside County that is conveniently near to the City of Riverside, Temecula, and north San Diego County. Winchester Hills is approved for 244 single family homes and 225 multi-family homes. Shopoff Properties Trust purchased the property from Pulte Homes for $2.48 million and closed on December 31, In early 2009, Shopoff Properties Trust negotiated a sale price of $5.0 million ($10,600 per unit), and closed on March 20, 2009 for a profit of $2,044,000. Rosetta Hills City of Lake Elsinore, California (SOLD in Q1 2010) The acquisition by Shopoff Properties Trust consisted of 65 finished lots in the Rosetta Hills residential community in the City of Lake Elsinore. Lennar Homes developed the property and sold approximately two-thirds of the homes. The remaining 65 finished lots were acquired by Shopoff Properties Trust. The asset was sold in February 2010 for $2,231,775 for a profit of $724,000.

8 SHOPOFF PROPERTIES TRUST Proprietary and Confidential The information contained in this report is considered strictly confidential and may not be distributed, reproduced or disseminated to third parties without the expressed written permission of Shopoff Realty Investments, L.P. This report and information contained herein does not by itself offer securities in an investment offering, and is not intended to solicit an offer from you to buy any securities. Securities may only be offered by the Fund s Confidential Private Placement Memorandum, which may be obtained only by accredited investors from their financial advisor. Certain statements contained herein may constitute forward looking statements. Any such statements, performance projections and results have been based upon assumptions, some of which will vary, perhaps materially, from actual events and do not constitute a prediction or representation as to actual performance. The Fund s Confidential Private Placement Memorandum and any supplementary documents discuss risks and uncertainties that may affect performance. Fund performance may be materially different from statements contained herein. Prior performance is not indicative of future results. There is no assurance that future projects will achieve comparable results. Alternative investment performance can be volatile and value-added real estate investments may involve additional risks. An investor could lose all or a substantial amount of their investment. There is no assurance that the Partnership objectives will be achieved. Securities offered through Shopoff Securities, Inc., member FINRA/SIPC. Information contained herein is not intended as tax or legal advice and Investors are encouraged to discuss investment decisions with their legal, tax and financial advisors.