Shopoff Secures $60.9M Financing From Lionheart for SoCal Magnolia Coast Project
Shopoff Realty Investments, a national manager of opportunistic real estate investments and a sponsor of private placement offerings, has received a $60.9 million senior mortgage for refinancing existing debt and providing additional funds for the future development activity on Magnolia Coast, formally known as “Magnolia Tank Farm,” in Huntington Beach, Calif. Lionheart Real Estate Credit Strategies II, Lionheart Strategic Management LLC’s current closed-end venture, provided the senior loan.
Magnolia Coast, a 28.9-acre ocean-front land parcel and site of a former oil tank facility, is positioned for residential and hospitality development. Shopoff secured California Coastal Commission approval in July 2024. The project anticipates approximately 200+ for-sale single-family detached and attached homes, a 50-unit affordable multifamily community, and a 215-key boutique hotel with 19,000 square feet of retail.
“This financing is a key step forward in bringing Magnolia Coast to life, marking a step forward in the development process of the project,” said William Shopoff, president and chief executive officer. “With construction slated for late 2025, this project represents an important opportunity to support the local workforce while potentially contributing to the growth and vitality of Huntington Beach.”
Construction of Magnolia Coast is anticipated to begin fourth quarter 2025 with an upcoming neighborhood in southwest Huntington Beach, offering a high-quality variety of hospitality and a unique neighborhood featuring a diverse housing mix, including an affordable housing component.
“We’re pleased to close on the refinancing of Magnolia Tank Farm alongside our borrower Shopoff Realty Investments and to further facilitate residential development in a significantly under-supplied market,” said Andy Klein, managing director and co-head of investments at Lionheart Strategic Management, which commenced operations in 2017. “This deal reaffirms Lionheart’s ability to close quickly on large predevelopment loan facilities alongside institutional counterparts while navigating complicated redevelopment schemes and challenging local zoning regulations.”
A key feature of the project includes an allocation of 50% of the affordable rental units for hotel workers employed on-site and within the coastal region of Huntington Beach.
At the beginning of 2025, Shopoff announced it had sold a 9.25-acre former parking lot to Beazer Homes for $9.8 million. Located in Sacramento, Calif., the property was once a parking lot for former office and production facility for The Sacramento Bee. In summer 2024, Shopoff acquired a 55-acre property in the Inland Empire East region of California, with plans to develop a distribution/warehouse space.
Shopoff Realty Investments is an Irvine, Calif.-based real estate firm with a 33-year history of generating appreciation through development projects, the repositioning of commercial income-producing properties, and the entitlement of land assets.
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