By Eric Engelbert
Updated July 2026
The project South Huntington Beach residents have watched with a mix of anticipation and skepticism for nearly a decade has cleared every major regulatory hurdle. The former Magnolia Tank Farm, now officially rebranded as Magnolia Coast, received unanimous Huntington Beach City Council approval in September 2024 and final California Coastal Commission certification in December 2024. Shopoff Realty Investments secured a $60.9 million refinance in January 2025, received tentative map approval from the city on January 27, 2026, and began demolition and rough grading in early 2026. What was once a contested remediation site is now actively becoming one of the most significant mixed-use coastal developments in Orange County.
From Oil Tanks to Coastal Community: The History of the Site
Shopoff Realty Investments acquired the 29-acre parcel in August 2016 for $26.5 million. At the time of purchase, the site housed three non-operational oil storage tanks, remnants of the historic Huntington Beach Oil Field that once made this stretch of the coast one of the top petroleum-producing areas in California. The tanks were removed as one of the earliest milestones in what became a lengthy entitlement process.
The site sits north of Pacific Coast Highway on Magnolia Street, behind the Huntington Beach Conservancy Marsh Lands, with unobstructed views of the Pacific Ocean. During the entitlement years, Shopoff leased the property as a construction staging area for the neighboring AES power plant and for storage for a nearby car dealership, keeping the land productive while the approval process ran its course.
The road from acquisition to shovels in the ground took nearly a decade. Two major forces slowed the timeline: the California Coastal Commission's scrutiny of the site's exposure to sea level rise and flooding, and the proximity to the ASCON toxic waste dump roughly a mile to the north. Environmental groups including the Orange County Coastkeeper and the Sierra Club raised concerns about flood risk, methane, and the site's location near a fault line. The CCC staff had at one point recommended denial of the rezoning application. That all changed in 2024.
What Is Being Built: Homes, Hotel, Retail, and Parks
The approved Magnolia Coast project is a $500 million mixed-use development across the full 29 acres. The components are:
For-sale homes. More than 200 single-family detached and attached residences will be built and sold through a national homebuilder. The residential lots are currently being marketed to builders. No specific builder has been publicly announced as of mid-2026.
Affordable apartments. A 51-unit affordable multifamily community is embedded in the project, satisfying the California Coastal Commission's requirement that at least 20 percent of all dwelling units carry affordability restrictions. A minimum of 50 percent of those affordable rental units are reserved, on a first right of refusal basis, for employees of the on-site boutique hotel and other hotel workers employed in the coastal zone of Huntington Beach.
Boutique hotel. A 215-key boutique hotel will serve visitors with direct proximity to Huntington State Beach. The hotel is expected to draw both leisure travelers and business visitors and will be the first new hotel to open in this stretch of South Huntington Beach in many years.
Retail. Approximately 19,000 square feet of retail space will anchor the ground-floor commercial portion of the project, serving residents, hotel guests, and visitors to the adjacent parks and beach access points.
Parks and open space. Four acres of parks are incorporated into the site plan, providing recreational space for the surrounding neighborhood and creating a buffer between the development and the conservancy marsh lands to the south.
How Shopoff Finally Got the Approvals
The two critical approvals that unlocked this project both came in the second half of 2024, ending years of regulatory uncertainty.
In September 2024, the Huntington Beach City Council voted unanimously to approve the project, providing the local entitlement anchor the development needed. The unanimous vote reflected the city's view of the project as both a housing solution and an economic catalyst for the South PCH corridor.
In December 2024, the California Coastal Commission certified the Local Coastal Program Amendment (LCPA) for the project. The certification formalized several conditions, most significantly the 20 percent affordable housing requirement across all dwelling units and the hotel employee housing priority within the affordable rental component. This was the approval that had been the most uncertain for years. With the CCC certification in hand, Shopoff had cleared the last major regulatory gate.
On January 27, 2026, the city issued tentative map approval, the formal step that establishes the subdivision of the land into individual parcels for the homes and other components. Demolition of remaining site improvements and rough grading began in early Q2 2026.
Timeline and Current Status as of Mid-2026
As of July 2026, here is where the project stands:
Financing. Shopoff completed a $60.9 million refinance in January 2025, secured through Lionheart Strategic Management. The refinance retired existing debt and provided additional capital for development and construction activity.
Tentative map. Approved by the City of Huntington Beach on January 27, 2026. This cleared the path to subdivision and lot sales.
Demolition and grading. Began early Q2 2026 (April to June 2026 timeframe). The site is now actively being prepared for vertical construction.
Site plan. Targeted for submission in Q2 2026.
Homebuilder selection. The residential lots are currently being marketed for sale to a national homebuilder. Once a builder is selected and lot sales close, that builder will set its own construction and sales timeline for the for-sale homes.
The project website for Magnolia Coast is visitmagnoliacoast.com, where Shopoff is maintaining project updates.
What Magnolia Coast Means for South Huntington Beach
The Magnolia Tank Farm site has sat largely idle for years, visible from PCH as a fenced-off expanse between the conservancy marsh and the highway. That changes materially once vertical construction begins. A few things worth watching:
Property values nearby. New construction at this scale, particularly when it includes a hotel and retail amenities, tends to support values in the surrounding residential neighborhoods over time. The addition of 4 acres of parks and improved coastal access points adds public benefit that accrues to existing homeowners as well as new residents.
New amenities. A 215-room boutique hotel within walking distance of the state beach fills a gap in the South PCH hospitality market. The retail component, positioned to serve both residents and hotel guests, adds convenience options that do not currently exist at this stretch of the coast.
Construction timeline for existing homeowners. Demolition and grading are underway. Once vertical construction begins, neighbors along Magnolia Street and adjacent streets should expect increased truck traffic and construction noise through the build-out, which will likely extend several years given the project's scale.
The affordable housing component. The 51 affordable apartments, particularly the hotel employee units, represent an unusual workforce housing solution within the coastal zone, where affordable inventory is almost nonexistent.
Environmental Context: What Buyers Should Know
The California Coastal Commission's December 2024 certification means the project has passed the state's environmental review for coastal development. That review addressed sea level rise exposure, flood risk, and the site's position behind the conservancy marsh lands. The commission's approval, while conditional, reflects a determination that the project can be built in compliance with coastal environmental standards as currently understood.
Buyers considering a home within Magnolia Coast should still do their own due diligence on a few site-specific factors. The ASCON toxic waste dump is located approximately one mile north of the site. It has been an active remediation project for decades and is not directly on the Magnolia Coast parcel, but its proximity is worth understanding. The site itself was used for oil storage, not oil production, and the tanks have been removed. No specific soil contamination or groundwater issues at the Magnolia Coast parcel have been disclosed in public filings reviewed for this blog.
The conservancy marsh lands that border the south edge of the site provide a natural buffer and are a protected ecological resource. Development within the coastal zone is subject to ongoing compliance with Coastal Commission conditions, including any monitoring requirements attached to the LCPA certification. Buyers should review all Natural Hazard Disclosures and Transfer Disclosure Statements carefully and should ask specifically about the history of the parcel and any environmental conditions embedded in the CC&Rs or Conditions of Approval.
Frequently Asked Questions
What is Magnolia Coast in Huntington Beach?
Magnolia Coast is the official name for the redevelopment of the former Magnolia Tank Farm, a 29-acre site north of Pacific Coast Highway on Magnolia Street in South Huntington Beach. Shopoff Realty Investments is developing it as a mixed-use community with more than 200 for-sale homes, 51 affordable apartments, a 215-key boutique hotel, 19,000 square feet of retail, and 4 acres of parks.
Did the California Coastal Commission approve Magnolia Coast?
Yes. The California Coastal Commission certified the Local Coastal Program Amendment for the project in December 2024, after years of review and prior staff recommendations against approval. The certification requires that at least 20 percent of all dwelling units carry affordability restrictions.
When will homes at Magnolia Coast be available?
Demolition and rough grading began in early Q2 2026. The residential lots are being marketed to a homebuilder, who will set its own construction and sales timeline once lot sales close. Model homes are likely two to three years out at minimum from mid-2026.
What was on the Magnolia Tank Farm site before?
The site housed three non-operational oil storage tanks when Shopoff acquired it in August 2016 for $26.5 million. The tanks were removed as one of the first steps in the entitlement process. Prior to that, the land was part of the broader Huntington Beach Oil Field that operated along this stretch of the coast for close to a century.
How will Magnolia Coast affect property values in South Huntington Beach?
New mixed-use development of this scale, including parks, hotel amenities, and retail, has historically supported property values in adjacent neighborhoods over time. Construction activity will create short-term disruption for nearby homeowners. The longer-term effect on surrounding home values will depend on how quickly the project delivers its retail and hotel components, which drive the neighborhood-level amenity improvements.
Buying Near Magnolia Coast? Let's Talk Strategy.
Whether you are an existing homeowner watching how this development will affect your property value, or a buyer who wants to position yourself in South Huntington Beach before the project drives pricing, understanding what is coming and when is the starting point. I am glad to walk through what this means for your specific situation.
