Newport Beach, Calif. (November 10, 2016) – Buchanan Street Partners has provided a $16 million loan to refinance 21845 Magnolia Street, a 29‑acre industrial facility in Huntington Beach, California recently purchased by subsidiaries of Shopoff Realty Investments. The loan represents the company’s ongoing strategy to provide reliable bridge financing for value-add real estate.
21845 Magnolia is one of the last large undeveloped coastal parcels in Southern California with redevelopment potential. Shopoff is planning a large-scale mixed-use development at the site to include single‑family homes, townhomes and open space, as well as visitor-serving uses such as hotel, commercial and retail components. Buchanan Street’s non-recourse first mortgage provides Shopoff new capital to support the pursuit of entitlements for the master-planned development.
“This was an attractive loan for Buchanan because of the project’s irreplaceable location in an area that is experiencing substantial development,” said Matt Doerr, vice president of Buchanan Street Partners. “Shopoff Realty Investments is a well-known and successful developer with significant expertise in entitlement work and large-scale developments. We were able to structure a bridge loan to facilitate the current phase of the property’s redevelopment.”
The property is situated near the intersection of Magnolia Street and Pacific Coast Highway in an amenity-rich beach community. It is located behind the Huntington Beach Wetlands Conservancy and steps from the Huntington State Beach. The project is also less than 2 miles south of Pacific City, a dynamic mixed-use project in coastal Orange County.
“The site presents many opportunities and will be a landmark development once it’s completed featuring attractive visitor-serving uses,” said William Shopoff, CEO of Shopoff Realty Investments. “Our tenured team is experienced and qualified with this type of complex project, and we are confident that they have the capability and resources to successfully execute on our business plan for the benefit of the community and our company.”
According to Doerr, Buchanan Street financed approximately 50 percent of the acquisition cost while meeting Shopoff’s quick close requirements.
Buchanan Street has invested and structured approximately $17 billion on behalf of institutional and private investors across a broad range of equity and flexible debt real estate investments throughout the United States.
Buchanan Street originates construction and bridge loans for the acquisition, redevelopment, recapitalization or refinance of commercial real estate in primary and secondary Western U.S. markets. The company is a balance sheet lender who funds loans offering flexible lending structures to accommodate varied borrower needs.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment management firm based in Newport Beach, California that invests debt and equity capital on behalf of institutional and private investors. Since its inception, Buchanan Street has invested and structured approximately $17 billion of capital in a broad range of equity and debt real estate investments throughout the United States. The company is comprised of a highly skilled team that has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing principal preservation. For more information: www.www.buchananstreet.com.
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