Real estate mogul Neil Shekhter is grappling with more financial challenges as the Bank of Southern California forecloses on three of his apartment properties. This move follows the recent loss of nearly half of Shekhter’s portfolio through deeds in lieu of foreclosure, signaling a turbulent period for his firm, WS Communities.
The Bank of Southern California took possession of 1007 Lincoln Boulevard, 1038 10th Street, and 1516 Stanford Street, comprising a total of 24 apartments, The Real Deal reported. Shekhter had unpaid debt of $15.8 million tied to these properties, prompting the bank to foreclose with a credit bid of $9.5 million at a public auction. This translates to an average of approximately $394,000 per unit.
Initially the properties were purchased for $10.6 million between 2015 and 2016.
Shekhter’s financial troubles extend beyond the recent foreclosures. His firm, WS Communities, recently handed over 28 properties to lenders, including Madison Realty Capital, Hankey Capital and Lightstone Capital, resulting in the alleviation of over $1 billion in unpaid debt. This was a setback for Shekhter and WS Communities, which owned approximately 2,200 units across Los Angeles County in 2020. The deeds-in-lieu are associated with over 870 units, and the firm has sold about 200 units since then.
Last year, the firm also sold three properties in West Los Angeles and Santa Monica. The firm sold the properties for a combined price of $76 million, or about $429,000 per unit, to FPA Multifamily. Consisting of 177 units, the properties are located at 1759 Beloit Ave. in Los Angeles’ Sawtelle neighborhood and 1539 4th St. and 1548 6th St. in Santa Monica.
