The Bank of Southern California did something big by putting up for sale three apartment buildings in Santa Monica. These buildings were owned by a guy named Neil Shekhter before, but now the bank owns them because Shekhter couldn’t pay back a loan of almost $16 million.
These apartments are in really good locations in Santa Monica. The bank wants to sell them for a total of $10.8 million, which means each apartment costs about $450,000.
This whole situation shows that Shekhter, who used to be a big-time developer, is having money problems. It also might mean that things are changing in the Santa Monica real estate world.
Transition from Foreclosure to Sale: A Smart Move
The foreclosure of three buildings at 1038 10th Street, 1007 Lincoln Boulevard, and 1516 Stanford Street in February led to a public auction. At the auction, the Bank of Southern California placed a credit bid of $9.5 million. This shows the bank’s strategy to recover its losses.
The bank is trying to sell the 24 units for $10.8 million. This is not just about recovering the money Shekhter owes but also taking advantage of the current market situation.
The fact that JLL’s Luc Whitlock is involved in marketing the portfolio shows how important this sale is in the real estate market.
The Broader Impact on the Market
The sale of these properties might affect the Santa Monica real estate market in a big way. Since nearly half of the units were empty when they were sold, people who want to live in them themselves might buy them. This could change how renting works in the area.
This sale also shows the challenges and opportunities in real estate. When people can’t pay their loans, it can change who owns properties and how the market works.
The fact that Shekhter and his company borrowed more money for the properties just before they couldn’t pay adds another twist to the story. It shows how risky real estate investments can be.
A Commentary on Real Estate Problems
What’s happening with the Bank of Southern California and Neil Shekhter’s failed properties is a big warning about how risky real estate can be.
The bank is suing Shekhter’s sons because they didn’t keep promises to pay back loans. This shows how real estate loans can be risky for personal finances.
This situation isn’t just about banks losing money. It also affects families and their money. It’s a lesson about being careful and not taking on too much financial risk in real estate.
