Hankey Capital Proposes 129 Apartments in Santa Monica

Hankey Capital wants to build a 129-unit apartment complex in Santa Monica.

The Hancock Park-based developer has filed plans to build the eight-story building at 2901 West Santa Monica Boulevard, Urbanize Los Angeles reported.

The approved project would replace a vacant lot at Santa Monica Boulevard and Yale Avenue.

Plans call for 129 studio, one- and two-bedroom apartments atop a parking garage for 129 cars.

The gray building, designed by Ottinger Architects, would include a rooftop deck and what appear to be inset balconies, according to a rendering.

The proposed development began as one of 14 builder’s remedy projects by Neil Shekhter’s WS Communities in 2022, which the developer later agreed to process administratively with the City of Santa Monica.

The initial development had called for a 12-story highrise with 190 apartments.

Shekhter’s WS Communities was then forced this year to surrender more than half of its portfolio to lenders, including Hankey and Madison Realty Capital, which have pushed forward with his former builder’s remedy projects.

Last month, the Ukrainian-born founder of WS Communities and NMS Properties died of unknown causes, according to his family. He was in his early 60s.

A representative from the Los Angeles County Medical Examiner said there is currently no record of Shekhter’s death.

Hankey Capital, founded in 1982 by Don Hankey, now owns more than 1 million square feet of commercial property and 500,000 square feet of urban land in Southern California valued at more than $1 billion, according to its website. The lending firm also carries more than $1.5 billion in loans.

Last month, Hankey filed a default notice against the owner of an 18,600-square-foot mansion in Brentwood, who fell behind on a $16.2 million loan tied to the Spanish Revival estate at 306 North Cliffwood Avenue. The owner is Logan Beitler, president of Beitler Commercial Realty Services, a commercial brokerage firm. An auction could be set as early as next month.

— Dana Bartholomew