WS Communities nabs $150M loan for six renovations and a development site

Madison Realty Capital provided financing for properties in Santa Monica, San Fernando Valley

WS Communities CEO Scott Walter and VP of Finance Gregory Proniloff, Madison Realty Capital’s Josh Zegen, 1433 Euclid Street in Santa Monica; and rendering of mixed-use project at 3030 Nebraska Avenue in Santa Monica (Credit: Google Maps and Madison Realty Capital)
WS Communities CEO Scott Walter and VP of Finance Gregory Proniloff, Madison Realty Capital’s Josh Zegen, 1433 Euclid Street in Santa Monica; and rendering of mixed-use project at 3030 Nebraska Avenue in Santa Monica (Credit: Google Maps and Madison Realty Capital)

New York-based Madison Realty Capital is continuing its West Coast expansion with another loan to landlord and developer WS Communities.

Madison, a developer and private lender, has provided a $150 million financing package for seven properties in Santa Monica and the San Fernando Valley, including six multifamily assets and a mixed-use development site, The Real Deal has learned.

In a statement, Madison co-founder and managing principal Josh Zegen said the multifamily market in L.A. is limited, there’s a high barrier to entry, and they’ve worked with WS Communities before.

The loan will replace existing debt and finance WS Communities’s renovations on four rental properties in Santa Monica: the 11-unit 1007 Lincoln Boulevard, the six-unit 1038 10th Street, the seven-unit 1516 Stanford Street, and the 22-unit 1433 Euclid Street; as well as two in the Valley: the 80-unit 11611 Blucher Avenue in Granada Hills and the 60-unit 7810 Topanga Canyon Boulevard in Canoga Park.

The package also includes bridge financing for a future mixed-use development site in Santa Monica, located at 3030 Nebraska Avenue and 3025 Olympic Boulevard.

Avison Young’s Justin Piasecki, Jay Maddox and Ethan Blum brokered the loan deal, and RST Capital Partners’ Rahim Thobani advised on the transaction.

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Madison, among the largest real estate lenders in New York City, has increased its footprint on the West Coast in recent years.

In March, Madison provided WS Communities with a $157 million loan for the development of 10 new apartment buildings in Santa Monica, with 849 rental units and 35,000 square feet of retail space. Last last year, the lender also provided a $345 million loan for seven of WS’ properties, including two ground-up developments.

Other Madison debt deals in Los Angeles include a $20 million construction loan to MarMar Group for a 16-unit project in Beverly Hills, and an $80 million refinancing of a 307-unit multifamily complex on Wilshire Boulevard in Westchester.

WS Communities’ principals are Adam, Alan and Alex Shekhter, the sons of prolific Santa Monica apartment developer Neil Shekhter. Scott Walter, the CEO, was also previously responsible for acquisitions and development at the elder Shekhter’s NMS Properties.

Contact Kevin Sun at kevsun1@gmail.com.

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