Shopoff Realty Investments is quickly expanding into the hospitality sector, both in and out of Orange County.
The Irvine-based development company last month announced big plans along the Las Vegas Strip, where it acquired a 5.3-acre parcel of land that will ultimately hold a high-rise 450-room hotel.
Shopoff is working with Costa Mesa-based Contour Real Estate, a boutique development firm, for the roughly 500,000-square-foot hotel project.
The duo, which has partnered together in the past on smaller deals, paid $21 million, or $4 million per acre.
Projected total investment for the development, called Dream Hotel Las Vegas, is $250 million to $300 million, according to William Shopoff, president and chief executive.
“It’s a bit of a departure for us, but we are very excited about the hospitality sector and the Las Vegas market,” said Shopoff, who has been an on-and-off investor in the city for more than two decades.
Long-Term Holding
New York City-based Dream Hotel Group will manage the hotel, which will include 56,000 square feet of food and beverage space, including a rooftop nightclub and pool; 12,000 square feet of meeting space; a full-service spa; fitness center; and parking.
“We want to have about six entertainment venues that aren’t necessarily focused on gaming,” Shopoff said.
The property is along the Las Vegas Strip, less than a mile from the Mandalay Bay Resort and the under-construction Allegiant Stadium, the future home of the Las Vegas Raiders.
“There is no shortage of mega-resorts in Vegas, but there is when it comes to boutique hotels that offer a more intimate experience,” said David Daneshforooz, chief executive of Contour.
Construction could begin in early 2021, and wrap by 2023, according to Shopoff. The project still needs to get entitled.
The land is within a federal-designated Opportunity Zone. As a result, Shopoff said his firm will stay on as an owner for longer than is typical for its investments—at least 10 years.
HB Hotel
Also on the agenda for Shopoff: hotels in both Surf City and New Mexico.
“We like the hospitality space currently,” said Shopoff, whose firm is best known locally for undertaking development projects facing challenging entitlement issues.
The company is planning a 215-key property in Huntington Beach as part of Magnolia Tank Farm, a 29-acre former industrial site it bought in 2016, just off Pacific Coast Highway.
It is still in the entitlement process for the mixed-use project, which is expected to ultimately include up to 250 single-family homes and a 4-acre commercial site that will hold the hotel and 19,000 square feet of retail space.
Elsewhere in Orange County, leasing is strong for the first phase of the Uptown Newport mixed-use project, which currently has 458 apartments, Shopoff said.
It is slated to include 1,244 residential units and commercial uses; Shopoff expects to break ground in the coming months on a retail project, along with a 30-unit luxury condominium project, for the site.
“It’s a really busy time for us,” said Shopoff.
