One of Santa Monica’s biggest developers has secured $141.4 million to recapitalize nearly 400 apartments in the coastal Westside city of Los Angeles.
WS Communities developed building 11 Samo Apartments with 399 units between 1997 and 2009. Today, it is the largest portfolio of affordable, restricted-act units in the city, located in downtown and the Bergamot neighborhoods of Santa Monica. The recapitalization included a senior loan of $127.6 million and a preferred stock investment of $13.8 million.
Based in Santa Monica Capital of Gortikov announced the financing and arranged the loans on behalf of the borrower, and also provided the preferred shares.
The brokerage did not disclose the lender, but an industry source familiar with the financing said it was provided by the New York-based company. Capital loan, who did not immediately respond to a request for comment. A portion of the funding will be set aside in reserve to develop new secondary suites on all properties.
Earlier this year, Ready Capital also provided $45 million to recapitalize a 59-unit midrise owned by WS Communities. Further away, Madison Realty Capital provided $125 million in funding for WS projects at 1550 Lincoln Blvd. in Santa Monica and 11001 Pico Blvd. in LA, while Lightstone Capital loaned $49 million for other WS projects in Santa Monica and Sawtelle, according to reports.
WS Communities is an extension of other major Santa Monica businesses NMS Properties and CSM Communitiesexecuted by Neil Shekhter. Bryan Gortikovchairman of Gortikov Capital, led the team representing the borrower.
Gregory Cornfield can be reached at [email protected].