Gortikov Capital Pays $120M for Santa Monica Affordable Housing Portfolio

A multifamily landlord and investor is acquiring an affordable housing portfolio in its hometown of Santa Monica, Calif., with plans to preserve and renovate the assets amid the state’s persistent affordability crisis.

Gortikov Capital agreed to pay $120 million, or $300,752 per unit, for the Samo Collection, a portfolio of 399 rent-restricted affordable housing units across 11 buildings. Prominent investor Neil Shekhter’s WS Communities sold the portfolio managed by Cirrus Asset Management.

Gortikov plans to complete renovations, including the common areas, as well as sustainability enhancements for the portfolio. The buildings were completed between 1997 and 2009 with studio, one-bedroom, two-bedroom and three-bedroom units. 

The assets are at 1422-1428 Sixth Street; 1423-1425 Sixth Street; 1522 Sixth Street; 1422-1432 Seventh Street; 1537 Seventh Street; and 2001-2009 Olympic Boulevard.

Gortikov Capital specializes in multifamily investment. With the Samo Collection acquisition, the firm claims it now controls 23 percent of Santa Monica’s affordable housing inventory built after 1990.

Shekhter has disposed of most of his multifamily portfolio in Santa Monica this year after surrendering nearly 30 properties with more than 870 units to lenders in the spring.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.