Bryan Gortikov is poised to overtake Neil Shekhter as the new affordable housing maven of Santa Monica.
His Gortikov Capital bought a 399-unit income-restricted multifamily portfolio in the beachside city west of Los Angeles from Shekhter’s WS Communities for $120 million, according to a spokesperson for Gortikov.
The portfolio, known as the Samo Collection, comprises 11 buildings, most of which are clustered between 6th and 7th streets near the corner of Santa Monica Boulevard, according to a leasing brochure online. The price works out to about $300,750 per unit.
Shekhter, who did not respond to a request for comment, once owned some 2,400 apartments in Los Angeles but has whittled that down by more than half in recent years rather than face foreclosure on dozens of his firm’s properties, as TRD reported earlier this year.
The portfolio deal carves off another piece of WS Communities’ once formidable empire and puts Gortikov in control of nearly a quarter of Santa Monica’s affordable housing stock constructed since 1990, according to the eight-year-old firm.
Gortikov plans to renovate the buildings’ common areas and perform some unit upgrades. The apartments vary in size from studios to three-bedrooms. The new owner also hopes to cut costs by managing the apartments more efficiently.
“We are incredibly excited to begin implementing our plan to improve these assets, preserve and expand affordability that our community so desperately needs,” Gortikov said in a statement.
He noted that the portfolio presents “a rare opportunity” to invest in Santa Monica, where his firm is headquartered.
No brokers were involved in the deal, according to a spokesperson for Gortikov. It’s unclear how the firm financed the acquisition.
Three recent multifamily projects show that developers have a keen interest in Santa Monica.
Earlier this month Holland Partner Group pitched a 370-unit project on a site where Kilroy Realty previously wanted to build an office tower at 1633 26th Street, near Bergamot Station. In September, Coast Meridian announced plans to bulldoze an auto repair shop to put up 69 units at 2307 Lincoln Boulevard.
And in August, Madison Realty unveiled a Santa Monica highrise with 172 units at 1433-1437 6th Street. Madison acquired the site from the predecessor of Shekhter’s WS Communities.