Bank of Southern California Lists Three Santa Monica Apartment Complexes for Sale

Bank of Southern California Lists Three Santa Monica Apartment Complexes for Sale After Foreclosure on Developer Neil Shekhter

In a surprising turn of events, Bank of Southern California has listed three apartment complexes in Santa Monica for sale, properties that were formerly owned by developer Neil Shekhter. The bank foreclosed on the buildings in February after Shekhter defaulted on nearly $16 million in loans tied to the properties.

The three buildings located at 1038 10th Street, 1007 Lincoln Boulevard, and 1516 Stanford Street are now on the market for a total of $10.8 million, with the bank hoping to recoup some of its losses from Shekhter’s unpaid debt. The properties, totaling 24 units, are being marketed for sale by a team led by JLL’s Luc Whitlock.

Shekhter had purchased the buildings for about $10.6 million between 2015 and 2016, but ran into financial trouble leading to the foreclosure. The properties can be bought individually or as a portfolio, with almost half of the units expected to be vacant at the time of sale.

Interestingly, the properties could be attractive to owner-occupiers who could live in one unit and rent out the rest, according to JLL’s marketing materials. Shekhter and his firm, WS Communities, had refinanced the properties in September 2022 using a business loan from Bank of Southern California, with Shekhter’s sons signing personal guarantees with recourse.

The bank had sued Shekhter’s sons over the defaulted loans, alleging that they had failed to pay back the sums due, according to court records. The sale of these properties will be closely watched by real estate investors and developers in the Santa Monica area as they present a unique investment opportunity in a prime location.