THE OPPORTUNITY

Magnolia Coast, formerly “Magnolia Tank Farm,” was acquired in August 2016 for $26.5 million and consists of approximately 28.9 acres of land in the City of Huntington Beach, California. At the time of acquisition the property housed three non-operational oil storage tanks. The site is located north of Pacific Coast Highway on Magnolia Street, with close oceanfront proximity and convenient access to Huntington State Beach, and sits behind the Huntington Beach Conservancy Marsh Lands with unobstructed views of the Pacific Ocean.

HOW SHOPOFF IS ADDING VALUE

Since acquisition, the property removed the existing oil tanks and the site was deemed acceptable for residential development. To generate revenue during the entitlement process, Shopoff leased the property as a construction staging area for neighboring AES, as well as storage for a nearby car dealership. Working diligently with both City and State governments, Shopoff was able to secure unanimous project approval from the Huntington Beach City Council in September 2024, and final approval from the California Coastal Commission in December 2024. The firm also completed a $60.9 million refinance of the existing debt in January 2025, with additional funds for further development and construction activity for the project.

The entitlements include 200+ single-family detached and attached for-sale homes, a 51-unit affordable multifamily community, a 215-key boutique hotel with 19,000-square-feet of retail, and four acres of park.

A key element of the project, 50% (minimum) of the affordable for-rent apartments, will be available on a first right of refusal to the project’s hotel employees, or employee’s of other hotels located in the coastal zone.

Construction of Magnolia Coast is anticipated to begin in the fourth quarter 2025 or first quarter 2026. Learn more at visitmagnoliacoast.com.

Disclosures

An investment in a Shopoff fund involves a high degree of risk, including the possible loss of your entire investment, and is illiquid with an uncertain liquidity date. This material does not constitute an offer to sell or a solicitation of an offer to buy any security. Securities offered through Shopoff Securities, Inc. Member FINRA/SIPC.

These properties are one of a number of properties that are managed by Shopoff Realty Investments, and owned by open and closed investment funds. For the listing of all Shopoff’s current holdings visit: https://www.shopoff.com/current-assets/