Hankey overcomes appeal against Koreatown apartment highrise

Hankey Investment Company has beat back a labor union-backed appeal trying to block a 163-unit apartment building in Koreatown.

The Los Angeles City Planning Commission sided with the Hancock Park-based developer led by billionaire Don Hankey in approving the eight-story building at 638-642 South Berendo Street, near Wilshire Boulevard, Urbanize Los Angeles reported. It would replace a parking lot.

The appeal by the Supporters Alliance for Environmental Responsibility, a Covina-based advocacy group tied to the laborer’s union, argued that the project should face further scrutiny under the California Environmental Quality Act.

A staff report recommended denial of the appeal, citing a lack of evidence to support its claims.

Plans call for 163 studio and one-bedroom apartments above parking for 103 cars, most of which would serve a commercial building next door.

Hankey would employ Transit Oriented Communities incentives to permit a larger building than zoning rules allow in exchange for 18 affordable apartments for extremely low-income households.

The orange, putty and white building with rows of exterior balconies would be clad in painted plaster and include recreation rooms, a terrace deck and a courtyard, according to a rendering.

The project was filed in July last year by the Hankey Investment Company, the real estate arm of subprime car loan king Don Hankey’s Hankey Group, according to The Real Deal.

An affiliate of Hankey bought the Berendo Street site in March last year for $14 million. The seller was Berendo, a company managed by Beverly Hills-based attorney Wayne Johnson. In early 2022, Berendo filed an application to build a 22-story, 343-unit highrise.

Hankey’s other major projects in Koreatown include the 25-story Kurve development at 2900 Wilshire Boulevard and a 490-unit development now taking shape next to Vermont/Beverly Station, according to Urbanize. Those projects were Hankey’s third development in partnership with Jamison Services, following the Circa apartment towers in Downtown Los Angeles.

— Dana Bartholomew