Marcus & Millichap Secures $61M for Huntington Beach Project
Huntington Beach, CA – IPA Capital Markets, a division of Marcus & Millichap specializing in capital markets services for major private and institutional clients, has announced the successful arrangement of a $60.9 million refinancing for a significant oceanfront redevelopment project in Huntington Beach, California. This financing will support the transformation of a 28.9-acre site into a mixed-use residential and hospitality community, with a strong focus on sustainability, public access, and affordable housing.
Strategic Financing for a Landmark Redevelopment
Gary Mozer, Executive Managing Director with IPA Capital Markets, led the effort in securing an 18-month, non-recourse loan on behalf of a California-based investment and development firm. This financing provides the necessary capital for the predevelopment phase of the ambitious project, ensuring a smooth transition into the construction phase, which is expected to commence in late 2025.
“This deal presented significant challenges due to the complexity of the redevelopment plans and local zoning regulations,” Mozer stated. “We conducted an in-depth analysis of the project’s design, market conditions, and regulatory requirements to structure financing that aligns with the developer’s vision. We are eager to see the development come to life and witness the positive impact it will have on the city of Huntington Beach.”
Comprehensive Redevelopment Plan
The redevelopment initiative was approved by the Huntington Beach City Council on September 17, 2024, following extensive planning and community engagement. The project is designed to enhance the coastal city’s economic vitality while preserving environmental integrity. It will include:
Residential Development
- Over 200 for-sale single-family detached and attached homes
- A 50-unit affordable housing community, with 25 units reserved for hotel workers employed on-site or in nearby hospitality businesses
Hospitality and Retail Development
- A 215-room boutique hotel, providing luxury accommodations and catering to both tourists and business travelers
- 19,000 square feet of retail space, featuring dining, shopping, and entertainment options
Environmental and Public Amenities
- 2.8 acres of coastal conservation space, ensuring the protection of natural habitats and coastal ecosystems
- 4.4 acres of public parks, offering green spaces for recreation and community engagement
Addressing Zoning and Development Challenges
One of the key hurdles in securing financing for the project was navigating Huntington Beach’s zoning and land-use regulations. The site, located along the picturesque California coastline, required compliance with stringent environmental and community development policies. The IPA Capital Markets team worked closely with stakeholders, including city planners and environmental groups, to develop a financial structure that meets both regulatory requirements and investor expectations.
The financing strategy was designed to accommodate potential market fluctuations and regulatory hurdles, ensuring the project remains financially viable through all phases of development. Mozer and his team leveraged their extensive experience in commercial real estate finance to negotiate terms that provided flexibility for the developer while minimizing risk for investors.
Economic and Social Impact on Huntington Beach
The redevelopment is expected to deliver significant economic and social benefits to Huntington Beach and its residents. The infusion of new housing units, especially affordable housing, will help address the city’s growing demand for residential options, while the hospitality and retail components will contribute to local job creation and tourism growth.
Boosting Local Economy
- The project will generate hundreds of construction jobs during the building phase.
- Once completed, the hospitality and retail sectors will create new employment opportunities.
- Increased tourism and visitor spending are expected to stimulate local businesses and services.
Enhancing Community Living
- The affordable housing component will provide critical support for workers in the hospitality sector, ensuring they have access to quality housing near their place of employment.
- The public parks and coastal conservation area will offer residents and visitors recreational spaces, promoting a sustainable and healthy urban environment.
- Smart growth principles will be integrated into the development, prioritizing walkability, green spaces, and environmentally responsible building practices.
Construction Timeline and Future Prospects
The project is currently in its predevelopment phase, with site planning, permitting, and infrastructure assessments underway. Construction is expected to begin in late 2025, with phased completions occurring over the following years. The residential and hospitality elements will be delivered in stages, ensuring a smooth integration into the existing urban fabric.
The successful financing of this project highlights the growing investor confidence in sustainable and mixed-use developments, particularly in prime coastal locations. With the increasing demand for eco-conscious real estate and live-work-play environments, this redevelopment aligns with modern urban planning trends and market expectations.over 1,700 investment sales and financing professionals across more than 80 offices, delivering expert services to buyers and sellers of commercial real estate.
