Embattled developer plans 89-unit resi complex in Westside

NMS Properties' Neil Shekhter is embroiled in a years-old lawsuit with former partner AEW Capital

Jun.June 22, 2018 08:15 AM
11001 Pico Boulevard and Neil Shekhter

Developer Neil Shekhter isn’t letting his legal troubles stop his construction plans.

The founder and CEO of NMS Properties, who is still facing a racketeering lawsuit brought by his former partner company, filed plans for an 89-unit apartment complex at 11001 Pico Boulevard on the Westside.

Shekhter wants to take advantage of the city’s Transit-Oriented Communities program, which gives property owners the ability to increase the size of their planned development in exchange for adding affordable units to their market-rate residential complexes. The planned construction has to be near a transit stop.

Shekhter wants to include 10 residential units for “extremely low income” renters. The development will also include around 7,700 square feet of open space, according to the filing.

The plans were submitted in Shekhter’s name through an LLC. He bought the 19,300-square-foot property in April 2015 for $8.25 million. The restaurant at that address was demolished last year and the space was rented to a Christmas tree market over the holidays.

Shekhter’s other recent business dealings haven’t been quite as cheery. He’s been battling former partner AEW Capital in court since 2014. The dispute has been over their joint investment in a nine-property portfolio spread around the Westside, mostly in Santa Monica. NMS Properties sued first, claiming that AEW backed out of an agreement to allow NMS to buy the Boston-based investment manager out a building.

AEW then claimed Shekhter forged documents related to the agreement. Last year, AEW filed a second suit claiming Shekhter violated federal racketeering laws and lied to banks, vendors, insurance companies, and “countless others,” regarding their business together. A judge denied Shekhter’s motion to dismiss last June.

Related Articles

Eric Garcetti orders a moratorium on LA commercial evictions (Photo credit: iStock photo)

Garcetti orders a moratorium on commercial evictions in LA

From left: Alan, Adam, and Alex Shekhter, with renderings of 501 Broadway and 601 Colorado (Credit: WS Communities and LinkedIn)

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica

LA promo

Coming Soon: The Real Deal Los Angeles’ Winter 2020 issue!

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office