#United States #Huntington Beach #Shopoff Realty #Magnolia Coast #Lionheart Strategic

Shopoff Realty Investments Secures Financing for Magnolia Coast

In a significant move for residential and hospitality development, Shopoff Realty Investments has announced the successful acquisition of a $60.9 million senior mortgage from Lionheart Strategic Management for its 29-acre property, Magnolia Coast, located in Huntington Beach, California. This financing aims to refinance existing debts and provide additional funds for anticipated future development projects.

Project Overview

Magnolia Coast, previously known as the Magnolia Tank Farm, has been carefully positioned for development that will include both residential and hospitality components. Following the approval from the California Coastal Commission in July 2024, this project is expected to transform the beachfront area with a variety of offerings, including:

• - Over 200 single-family homes, both detached and attached
• - A 50-unit affordable multifamily community
• - A boutique hotel with 215 keys and approximately 19,000 square feet of retail space

William Shopoff, President and CEO of Shopoff Realty Investments, shared his thoughts on the financing: "This financing is a key step forward in bringing Magnolia Coast to life, marking significant progress in our development process for the project. We expect construction to begin in late 2025, which will not only support the local workforce but could also contribute positively to the growth and vitality of Huntington Beach."

Importance of Affordable Housing

The Magnolia Coast project is particularly noteworthy due to its commitment to addressing local housing shortages. Among the highlights, the plan includes a provision for allocating 50% of the affordable rental units specifically for hotel workers. This initiative aims to provide housing access for those essential employees who might struggle to find suitable accommodations in the current real estate market.

Andy Klein, the Managing Director and Co-Head of Investments at Lionheart Strategic Management, expressed his enthusiasm for the collaboration: "We are pleased to close on the refinancing of Magnolia Tank Farm alongside Shopoff Realty Investments, further facilitating residential development in a significantly under-supplied market. This deal reaffirms Lionheart's capability in closing quickly on large predevelopment loan facilities while navigating complex redevelopment schemes and local zoning regulations."

Future Plans and Community Impact

Looking ahead, the construction of Magnolia Coast is anticipated to start in the fourth quarter of 2025 in a neighborhood located in southwest Huntington Beach. The project promises to offer varied hospitality options along with a diverse range of housing that meets the needs of local residents. This multifaceted approach not only aims to elevate the community's living standards but also to enhance the overall economic landscape of the area potentially.

As Shopoff Realty Investments has a 33-year history in opportunistic and value-add real estate investments, the firm is well-positioned to handle such ambitious projects. Their experience in repositioning properties and generating growth will serve them well in realizing the Magnolia Coast development.

About the Companies

Shopoff Realty Investments specializes in creative real estate solutions, focusing on generating appreciation through strategic land entitlements and development projects. Their past operations have also included partnering with various entities to optimize property values across different markets in the United States.

Lionheart Strategic Management, on the other hand, was founded in 2017 to manage a diverse array of real estate investments in top urban markets, showcasing a commitment to responsible growth and partnership in the sector.

For more information about the project and ongoing developments, please visit Shopoff Realty Investments and Lionheart Strategic Management. Please note, however, that the development process is subject to various factors that could impact timelines and outcomes, underscoring the intricate nature of real estate development.