Shopoff Realty Investments Secures Financing from Lionheart Strategic Management for 29-Acre Magnolia Coast in Huntington Beach

HUNTINGTON BEACH, Calif., Feb. 10, 2025 /PRNewswire/ -- Shopoff Realty Investments ("Shopoff"), a national manager of opportunistic and value-add real estate investments, announced today that it 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, CA. Lionheart Real Estate Credit Strategies II, Lionheart Strategic Management LLC's ("Lionheart") current closed-end venture, provided this senior loan.

Magnolia Coast, a 28.9-acre ocean-front land parcel, 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," explained Shopoff President and CEO William Shopoff. "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."

"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. "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."

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. 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.

Andy Klein and Benjamin Eshiwani led the transaction for Lionheart Strategic Management.

About Shopoff Realty Investments

Shopoff Realty Investments is an Irvine, California-based real estate firm with a 33-year history of value-add and opportunistic investing across the United States. The company primarily focuses on proactively generating appreciation through the repositioning of commercial income-producing properties, the entitlement of land assets, and development projects. The 33-year history includes operating as Asset Recovery Fund, Eastbridge Partners, and Shopoff Realty Investments (formerly known as The Shopoff Group). Performance has varied in this time frame, with certain offerings generating losses. For additional information, please visit www.shopoff.com or call (844) 4-SHOPOFF.

About Lionheart Strategic Management LLC

Lionheart Strategic Management, LLC was established in 2017 as the asset management vehicle for an affiliate of Fisher Brothers to manage investments for individuals of the firm and on behalf of third-party investors seeking exposure to real estate strategies with a primary focus on top urban markets within the United States. For more information, please visit lionheartstrategic.com.

Disclosures

The development of Magnolia Coast is subject to various factors, including permitting processes, market conditions, and construction timelines, which could affect the project's outcome. Timelines are subject to change.

This is not an offering to buy or sell any securities. Such an offer may only be made through the offering memorandum to qualified purchasers. Any investment in Shopoff Realty Investments programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. There is no assurance that any strategy will succeed to meet its investment objectives. The performance of this asset is not indicative of future results of other assets. Securities are offered through Shopoff Securities, Inc. member FINRA/SIPC, 18565 Jamboree Road, Suite 200, Irvine, CA 92612.

Contact:
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SOURCE Shopoff Realty Investments