News Summary
Santa Monica’s 2500 block of Wilshire Boulevard is set to see multiple business closures as construction begins on a new residential development project by Cypress Equity Investments. The project will include an eight-story, 170-unit apartment complex, featuring ground-floor retail space. Notable closures include a Starbucks and a Pickleball center. This transition arises from updated housing plans in Santa Monica aimed at increasing affordable housing units while the local community grapples with mixed feelings towards these developments.
Santa Monica is set to undergo significant changes as multiple businesses on the 2500 block of Wilshire Boulevard prepare to close by the end of October. This closure is part of the transition for the demolition and construction of a new residential development project by Cypress Equity Investments (CEI) at 2501 Wilshire Boulevard, directly across from Douglas Park. The planned construction will feature an eight-story, 170-unit apartment complex, which will also include ground-floor retail space.
The businesses located at the site have been formally notified about the impending demolition, with some stores expected to shut down as early as this week, while others will vacate in the upcoming weeks. Notable closures include a Starbucks coffee shop, the Relax the Back store, and a Pickleball center, which have been fixtures in the area.
Cypress Equity Investments had originally secured approvals for a smaller mixed-use building that included a grocery store on the ground floor. However, in light of Santa Monica’s Housing Element update in 2023, CEI adjusted its plans, resulting in an increase in the unit count from the original proposal. The revised development now includes 170 residential units, with 17 designated as deed-restricted affordable units, catering to a critical need for affordable housing in the area.
This transformation also marks a significant increase in the building’s height, changing from an initial four-story design to an eight-story structure. Project documents suggest that the plans will still retain a considerable retail component, potentially incorporating a market within the complex.
CEI has established a dedicated project website to provide updated specifications about the proposed apartment complex. According to reports, the company is actively progressing with its enlarged development plan, which has been reviewed in city hearings throughout 2024, and final approvals are expected in 2025.
The development at 2501 Wilshire Boulevard is part of an extensive pipeline of projects by Cypress Equity Investments in Santa Monica. Over the past five years, CEI has emerged as a prominent builder in the region, with several completed multifamily developments and proposed projects totaling more than 1,000 housing units spread over multiple locations. Currently, CEI has an active pipeline in Santa Monica that includes well over 1,000 new apartments across at least six sites, strategically positioned along major thoroughfares like Wilshire Boulevard, Santa Monica Boulevard, and Pico Boulevard.
CEI’s redevelopment strategy aligns with Santa Monica’s planning goals aimed at increasing housing options along transit corridors. Many of CEI’s projects utilize state law density bonuses, allowing for taller and denser buildings when affordable units are included in the development plan. Founded 30 years ago, Cypress Equity Investments specializes in the development of mixed-use apartment complexes, often featuring retail spaces on the ground floor.
CEI’s CEO, Michael Sorochinsky, is known for promoting an “opportunistic” investment strategy, which allows the firm to adjust swiftly to changes in market cycles concerning Class-A apartments. While the company’s aggressive growth strategy has been praised for addressing the regional housing crisis, it has also faced backlash from local residents concerned about overdevelopment.
Current sentiment among Santa Monica residents appears mixed. Some individuals living in completed CEI developments have embraced car-free living due to the city’s walkable infrastructure. However, there has been notable public dissatisfaction stemming from CEI’s opposition to Measure GS, a real estate transfer tax that was approved by voters to fund educational and homelessness initiatives.
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Additional Resources
- Santa Monica Daily Press: Businesses Prepare to Vacate 2500 Block of Wilshire
- Wikipedia: Santa Monica, California
- Santa Monica Daily Press: Santa Monica Approves 260-Unit Housing Project
- Google Search: Santa Monica housing projects
- Beverly Hills Courier: Planning Commission Approves 9600 Wilshire Boulevard Project
- Google Scholar: Santa Monica development
- Larchmont Chronicle: Metro to Pick Developer for Wilshire and Crenshaw
- Encyclopedia Britannica: California urban development
- Multi-Housing News: JV Begins Office to Resi Conversion in LA
- Google News: Los Angeles real estate development
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
