WS Communities Borrows $141M for Santa Monica Portfolio
By Greg Cornfield October 7, 2022 6:15 pm
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One of Santa Monica’s most prominent developers has secured $141.4 million to recapitalize nearly 400 apartments in the coastal city on Los Angeles’ Westside.
WS Communities developed the 11-building Samo Apartments with 399 units between 1997 and 2009. Today it is the largest portfolio of deed-restricted affordable units in the city, located downtown and in the Bergamot districts of Santa Monica. The recapitalization included a $127.6 million senior loan and a $13.8 million preferred equity investment.
Santa Monica-based Gortikov Capital announced the financing and arranged the loans on behalf of the borrower, and also provided the preferred equity.
The brokerage did not disclose the lender, but an industry source familiar with the financing said it was provided by New York-based Ready Capital, which did not immediately respond to a request for comment. A portion of the financing will be set aside in a reserve to develop new accessory dwelling units throughout the properties.
Earlier this year, Ready Capital also provided $45 million to recapitalize a 59-unit midrise owned by WS Communities. Further, Madison Realty Capital provided $125 million financing for WS projects at 1550 Lincoln Boulevard in Santa Monica and 11001 Pico Boulevard in L.A., 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 big Santa Monica firms NMS Properties and WSC Communities, run by Neil Shekhter. Bryan Gortikov, president of Gortikov Capital, led the team representing the borrower.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
