Hankey Capital Unveils Plans for Two 7th Street Developments
Plans for two residential projects in Downtown Santa Monica, including a 23-story tower, have surfaced as part of Hankey Capital’s growing real estate footprint in the city.
According to a new project website, the larger development would rise at 1518–1524 7th Street, replacing an existing 10-unit rental complex. The proposal calls for a 23-story mixed-income building with 104 for-sale units and 20 deed-restricted affordable units to replace the existing apartments. The design also includes podium- and rooftop-level amenities and parking for roughly 220 vehicles across subterranean and podium garages.
A second, smaller project is planned nearby at 1238 7th Street, where Hankey Capital has proposed a four-story, 23-unit apartment building to serve entirely as affordable housing. Both projects are designed by Ottinger Architects.
The developments trace their origins to “builder’s remedy” applications filed in 2023, when Santa Monica’s housing element was out of compliance with state law. Although the city later reached a settlement allowing projects to proceed through standard review processes, WS Communities — the original applicant for many of the proposals — lost control of its portfolio to lenders in 2024. Hankey Capital and Madison Realty Capital have since moved forward with new plans on several sites once tied to WS Communities, including the two 7th Street properties.
Santa Monica, long resistant to high-rise construction, is now seeing multiple high-density proposals as developers respond to state mandates for additional housing. A virtual community meeting on the projects is scheduled for Thursday, September 11, 2025, from 6:00 to 7:30 p.m. Residents can join via Zoom or RSVP or ask questions via email.
