Magnolia Partnership LLC Announces That Northgate Market Has Filed a Lawsuit Against Its Magnolia Flats

 The Court of Appeal, Fourth Appellate District, will hear an appeal from a lower court’s ruling enjoining a 450-apartment unit project known as Magnolia Flats, located adjacent to Northgate Market in Riverside, California. Northgate Market filed a lawsuit seeking to prevent the housing from being built because it would allegedly interfere with its delivery trucks, which currently drive through an easement-protected drive aisle between Northgate and the housing site sought to be developed. The Magnolia Flats developer, Magnolia Partnership LLC, alleges that the project has accommodated Northgate’s desire to drive their delivery trucks across the Magnolia Flats development site with multiple ingress and egress options.

Magnolia Partnership LLC (“Magnolia”) is the owner of mixed-use zoned property at 10481 Magnolia Avenue, Riverside, California (the “Magnolia Property”). Magnolia purchased the Magnolia Property to construct an attractive mixed-use commercial development consisting of desperately needed workforce multifamily housing (450 apartments) and 9,000 square feet of retail space (the “Magnolia Project”). Magnolia’s goal in developing the Magnolia Project is to provide much-needed workforce housing for hundreds of middle- and lower-income families in the Riverside community. This new multifamily housing development would also greatly help the City of Riverside achieve compliance with the State of California’s Regional Housing Needs Allocation (“RHNA”) requirements. The City of Riverside is required to provide a minimum of 18,415 new housing units for the 2021-2029 Housing Element Cycle. An added benefit of the Magnolia Project would be additional customers frequenting the businesses surrounding the Magnolia Property, businesses which include the proposed Northgate Market grocery store. However, Northgate seeks to block the development of the Magnolia Project because of purported easement and access concerns.

Allegedly, Magnolia went through a process designing and entitling the Magnolia Project which culminated with the Magnolia Project recently being approved by the City of Riverside. Unfortunately, on September 14, 2021, Northgate Gonzalez, LLC (“Northgate Market”) filed a lawsuit against Magnolia and Realm Real Estate, LLC (“Realm”) (Northgate Gonzalez, LLC v. Realm Real Estate, LLC; Magnolia Partnership, LLC, Case No. CVRI2104149), which blocked the development of the Magnolia Project. The Complaint filed by Northgate Market also named Wilson Holdings, L.P. (“Wilson”) and Los Altos XXVII, L.P. (“Los Altos”) as plaintiffs. According to the Complaint, Wilson and Los Altos own the property where the Northgate Market is located (the “Northgate Property”).

In its Complaint, Northgate Market alleges that development of the Magnolia Project violates a 1979 easement agreement between the Northgate Market and Magnolia Project properties. Northgate Market alleges that the land must be used for shopping center and commercial purposes. Previously, a Toys-R-Us was operated on the Northgate Property and a GEMCO was located on the Magnolia Property (both Toys-R-Us and GEMCO closed their stores leaving the vacant site a blighted and underutilized eyesore).

Concurrently with the filing of its Complaint, Northgate Market also applied for and was granted a preliminary injunction enjoining (blocking or prohibiting) the Magnolia Project, a multifamily housing community recently approved in the City of Riverside. Magnolia and Realm have appealed the preliminary injunction, alleging the easement agreement’s purpose is for ingress, egress and parking, and contains no use restrictions, maintaining the mixed-use commercial multifamily Magnolia Project is definitionally in compliance with the commercial language of the easement agreement. Additionally, Magnolia has filed a Cross-Complaint against Northgate Market.

In their Cross-Complaint, Magnolia alleges that prior to the lawsuit being filed by Northgate Market, representatives of Northgate Market, Wilson, and Los Altos made demands for substantial money from Magnolia. The Cross-Complaint alleges, “On or about January 29, 2019, representatives of Plaintiffs and Cross-Complainant [Magnolia] met in Newport Beach to discuss Cross-Complainants’ project. Plaintiffs’ representative Scott Bell opened the meeting by stating ‘This is going to cost iStar a lot of money!’” The Cross-Complaint alleges that at the time Mr. Bell made these comments, iStar was the owner of the Magnolia Property and that it appears that based on the timeline of events as described in the Cross-Complaint, the monetary demand made to Magnolia precedes the filing of Northgate Market’s Complaint to enjoin, or block, development of the Magnolia Project.

Darrin Olson, a representative for Magnolia, says, “Northgate Market’s decision to file suit to oppose the City approved development of 450 housing units is unfortunate given that housing is desperately needed in the State of California and the City of Riverside. From the inception of the Magnolia Project and through today, the development team has taken great efforts in designing the mixed-use commercial and multifamily development to be harmonious with the easement and integrated with its neighbors such as Northgate Market, while going above and beyond in designing the Magnolia Project in a manner that addresses and alleviates those concerns voiced by Northgate Market, including delivery truck circulation.” Mr. Olson further states: “Words cannot describe how disappointed we are in Northgate Market’s opposition to a much needed 450-unit multifamily workforce housing development project. These same residents of our proposed apartment development are likely customers of Northgate Market. Magnolia just wants to improve our community by providing desperately needed workforce housing in the area.”

Mr. Olson continues, “The City of Riverside describes its vision of Riverside as ‘the place where the American Dream is realized. A place where regardless of income level, people are able to find distinctive, special places to live.’ The Magnolia Project is designed with the goal of providing such housing in order for the City to realize that vision and furnish that dream.”

Notably, the developer behind Magnolia Flats has successfully developed other architecturally appealing multifamily projects in the Inland Empire that provide significant housing enhancements to communities. For example, “Mission Lofts” is an attractive 212-unit apartment community located in Riverside’s Eastside, a Hispanic neighborhood, whereby a blighted, Metrolink adjacent, commercial site was redeveloped into workforce housing. Additionally, “Monterey Station” is a 349-unit apartment community that was developed by the owners of Magnolia and completed in downtown Pomona. Similar to the Magnolia Flats and Mission Lofts developments, the Monterey Station project site was a blighted commercial area near downtown Pomona and next to the Metrolink station, before being developed into new workforce housing for hundreds of families.

Similar to Mission Lofts and Monterey Station, the owners of Magnolia are seeking to enhance and provide the much needed 450-unit workforce multifamily housing in Riverside on a blighted site.

On 09/14/2021, Northgate Gonzalez, LLC filed a lawsuit against Realm Real Estate, LLC. This case number 2104149 was filed in Riverside County Superior Courts, Riverside Historic Courthouse located in Riverside, California. The Judge overseeing this case is Chad Firetag.

About Magnolia Partnership LLC and Its Investors: Magnolia Partnership LLC is a partnership that is developing Magnolia Flats, which project investors include The Bascom Group and Realm Group. They have completed over $20.7B in multifamily value-added transactions since 1996, including 350 multifamily community acquisitions and 90,000 units as well as numerous developments.

Realm Group

Darrin Olson




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Magnolia Green welcomes Moseley Elementary School to the Chesterfield community

Chesterfield County Public Schools held a ribbon cutting ceremony on July 25 to welcome its 40th elementary school into the district.

Moseley Elementary School

Moseley Elementary School

CHESTERFIELD, Va.Aug. 1, 2022PRLog — After two years of anticipation, Magnolia Green is proud to announce that Chesterfield County Public Schools and community leaders held a ribbon cutting ceremony early last week for Moseley Elementary School.

Home of the Mustangs, the school will officially welcome its first students (grades K-5) on August 22. The school is the 40th elementary school within Chesterfield County Public Schools.

Moseley Elementary School is located at 7100 Magnolia Green Parkway in the Matoaca District and encompasses 104,621 sq. ft. of space for 900 students. “This is another great day in the Matoaca District and for all of Chesterfield County,” said Ryan Harter, Chesterfield County School Board member in a recent press release.

Chesterfield County Public Schools broke ground on Moseley Elementary School in November 2020. The project was completed on time and under budget, according to the school district.

Tom Page, Senior Vice President of iStar and General Manager of Magnolia Green, expresses how Moseley Elementary School is a critical asset to the hundreds of young families, and thousands of children, living in Magnolia Green.

“We are so excited to welcome Moseley Elementary School in the heart of our community,” said Page. “The state-of-the-art school, combined with a passionate principal and dedicated staff, will give our children a great head start as they begin their education. We also know that the parental and community involvement is what makes a great school, and we welcome the opportunity to support Ms. Dubiel and her staff in any way we can.”

Moseley Elementary School is a one-story, brick veneer building designed with a core area for administration, media center, art, music and cafetorium with three academic wings for grades K-5.

Security features include a secure vestibule, cameras, motion sensors, card access readers, key management and fencing. Additional features include 75-inch interactive monitors in all classrooms; flexible common space in each wing; dedicated wi-fi throughout the building; LED lighting; water bottle stations; ample storage in each classroom, and touchless lavatories and flush sensors in restrooms.

Karen Dubiel, Principal of Moseley Elementary School, said she is thrilled to become a member of the Moseley family and serve the Chesterfield community.

“It is humbling to have the opportunity to select a caring and dedicated staff that will continually strive to provide the best learning opportunities for our students,” said Dubiel. “In the coming months, I look forward to working with our parents, students, and staff to create a dynamic community of learners.”

To learn more about Moseley Elementary School, visit

About iStar, the developer of Magnolia Green:

iStar has been one of the largest investors in luxury condominium, multifamily and master-planned residential developments throughout the United States, having financed and invested in $10 billion of residential projects since 1993. Through inspired design and a careful attention to detail, iStar develops communities that create sustainable value for residents and community members and provide unique lifestyle experiences.

Magnolia Green welcomes Magnolia Academy Children’s Center to the community

The center is part of The Marketplace at Magnolia Green, a 90-acre mixed-use commercial development adjacent to the master planned community.

Magnolia Academy Children’s Center is now open.

Magnolia Academy Children’s Center is now open.

CHESTERFIELD, Va.Jan. 14, 2022PRLog — The wait is over! Magnolia Green has announced that Magnolia Academy Children’s Center is now open. Magnolia Academy Children’s Center is a brand new, 12,000 sq. ft. child development center located at the southwest corner of Magnolia Green Parkway and Magnolia Market Avenue. Magnolia Academy Children’s Center celebrated its Ribbon Cutting Ceremony last week and formally opened to the public on January 3rd. The center is part of The Marketplace at Magnolia Green and is walkable from over 500 existing homes and apartments at the master planned community.

“We are so excited to extend a very warm welcome to Magnolia Academy Children’s Center,” said Tom Page, Vice President of iStar and General Manager of Magnolia Green. “The Academy will be a huge asset to the hundreds of working families with young children living in and around Magnolia Green.”

Magnolia Academy Children’s Center offers full-time care for infants through pre-kindergarten, as well as before and after school care for ages 5-12 who attend Winterpock Elementary, Woolridge Elementary, Grange Hall Elementary and Tomahawk Creek Middle. The new Moseley Elementary School will open in Magnolia Green this fall, and combined with the Academy, will offer residents the ultimate convenience when managing both school and work schedules. During the summer months, the center also offers camps for school-age children. To learn more, visit

“We are thrilled to be a part of this amazing community,” said Brent Wittersheim, an owner at Magnolia Academy Children’s Center. “We have been welcomed with open arms and look forward to educating and serving the families for generations to come.”

For business owners and operators who wish to join the Academy and be part of The Marketplace at Magnolia Green, numerous parcels are available, some of which front Hull Street Road, and all of whom have direct access to the community.

“This is an exciting time for Magnolia Green,” said Page, “with over 1,600 families currently living in the community, another 1,000 moving in over the next 3-4 years, and thousands more moving into the immediate area, we believe our commercial parcels are primed for development.” These sites are perfectly positioned at the front door to a world-class master-planned community located in the most desirable area of Chesterfield County.”

To learn more about commercial opportunities, visit   or email Tom Page at

About iStar, the developer of Magnolia Green:

iStar has been one of the largest investors in luxury condominium, multifamily and master-planned residential developments throughout the United States, having financed and invested in $10 billion of residential projects since 1993. Through inspired design and a careful attention to detail, iStar develops communities that create sustainable value for residents and community members and provide unique lifestyle experiences.