Santa Monica mega-portfolio officially hits market

Shekhter family teased the offering of the 2,100-unit parcel in December

Los Angeles /
Jan.January 14, 2021 11:17 AM
 
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)

It’s official: The largest multifamily development opportunity in Santa Monica in a generation is now on the market.

WSC Communities’ 23-parcel portfolio, entitled for the development of over 2,100 units and over 1 million square feet of residential space, is being billed by the brokers as a chance for a buyer to become the largest multifamily landlord in Santa Monica, controlling about 7 percent of the city’s market-rate inventory.

WSC is controlled by the family of prominent Westside landlord Neil Shekhter, and led by CEO Scott Walter. Shekhter declined to comment. In December, The Real Deal first reported that WSC was testing the market for the portfolio.

“Never has there been an opportunity to acquire a development portfolio of this size in Southern California, never mind Santa Monica,” state the marketing materials, which were reviewed by TRD. No pricing guidance was provided.

The materials tout the project’s “reduced affordable component,” because many of the entitlements were secured before Santa Monica’s heightened affordability requirements were put in place.

“If proposed today these projects would have to provide 30% on-site affordable housing or 35% off-site affordable housing,” the materials state, compared to the 20 percent requirement in place.

The portfolio is also entitled for over 200,000 square feet of commercial space. The addresses include 1430 Lincoln Boulevard, 1325 6th Street, 1437 6th Street and 1318 Lincoln Blvd. All but two of the sites – 1520 7th Street and 3025 Olympic Boulevard – are entitled.

A Walker & Dunlop team of Blake Rogers, Javier Rivera, Alexandra Caniglia and Hunter Combs is handling the sale.

There were just $6.1 billion in total L.A. metro multifamily deals as of December 2020, according to Savills, down from $13.2 billion last year. Still, the portfolio in play here could upend the hierarchy among Southern California’s residential landlords: The entire city of Santa Monica has just under 37,000 rental units.






    Related Articles

    arrow_forward_ios
    Related Fund Mangement’s Managing Principal Justin E. Metz and a rendering of Cross Creek Ranch. (Jay Luchs, Related)
    Malibu’s largest commercial project nabs $130M construction loan
    Malibu’s largest commercial project nabs $130M construction loan
    Rescore Property Corp. Managing Principal Arthur Falcone and a rendering of the project (iStock)
    Hollywood apartment development lines up $138M loan
    Hollywood apartment development lines up $138M loan
    Related California CEO William Witte and a rendering of the project (Getty, City of Santa Monica)
    Renderings reveal Related’s 296-unit Santa Monica project
    Renderings reveal Related’s 296-unit Santa Monica project
    Shane Smith and his Santa Monica Estate (Photos via Getty; The Agency)
    Vice Media co-founder Shane Smith wants $50M for SaMo mansion
    Vice Media co-founder Shane Smith wants $50M for SaMo mansion
    Rendering of 1411 South Flower Street (Housing Diversity Corporation)
    Micro-housing to rise in DTLA Opportunity Zone
    Micro-housing to rise in DTLA Opportunity Zone
    NMS Properties' Neil Shekhter and renderings of 1325 6th Street, 1437 6th Street, 1430 Lincoln Blvd. and 1318 Lincoln Blvd. in Santa Monica (Kevin Scanlon, WSC)
    City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
    City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
    Neil Shekhter of NMS Properties, who is involved in the lawsuit. (Kevin Scanlon)
    Landlords sue Santa Monica over “arbitrary” ban on short-term rentals
    Landlords sue Santa Monica over “arbitrary” ban on short-term rentals
    300 S. Santa Fe Ave. (Google Maps)
    LA’s top 5 multifamily investment sales of 2020 fell 50%
    LA’s top 5 multifamily investment sales of 2020 fell 50%
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...