MAGNOLIA TANK FARM, at Magnolia Street and Banning Avenue in Huntington Beach.

A major step toward the development of a controversial mixed use project in Huntington Beach has been taken.
According to Shopoff Realty Investments, a $60.9 million mortage has been received for costs associated with making the “Magnolia Coast” a reality.

The Magnolia Coast would be a 28.9-acre ocean-front land parcel that would include 200 or more for-sale single family detached and attached homes, a 50-unit affordable multi-family community and a 215-key boutique hotel with 19,000 square feet of retail.

Best-known as the “Magnolia Tank Farm,” the site was previously used for oil production, which hearkens back to the city’s past as a major petroleum drilling center.

Objections to the development were focused on environmental concerns. The Huntington Beach City Council approved the project in February 2021 on a 4-3 vote and the California Coastal Commission gave its approval in July 2024.

Construction is expected to begin in the fourth quarter of this year. The site is located on the west side of Magnolia Street at Banning Avenue.