Several businesses on the 2500 block of Wilshire Boulevard are preparing to close by the end of October to make way for demolition and construction of a major residential development project by Cypress Equity Investments (CEI).
The closures will clear the site at 2501 Wilshire Boulevard, located across from Douglas Park, where CEI plans to build an eight-story, 170-unit apartment complex with ground-floor retail space.
Businesses at the address, including a Starbucks, Relax the Back store and Pickleball center have been notified of the pending demolition. Some are closing as soon as this week while others will be vacating in the coming weeks.
CEI initially secured approvals for a smaller mixed-use building at the site that included a grocery store space on the ground floor. However, following Santa Monica's Housing Element update in 2023, the Brentwood-based developer filed a major revision to more than double the unit count.
The revised proposal calls for 170 residential units, including 17 deed-restricted affordable units, in an eight-story structure that transforms the original four-story design into a much taller project. The plan retains a significant retail component, likely to include a market, according to project documents.
A dedicated project website outlines the updated specifications, and real estate publication The Real Deal reported in October 2023 that CEI was moving forward with the enlarged development plan. City hearings on the revised design took place in 2024, and CEI is expected to seek final approvals in 2025.
The 2501 Wilshire project is part of CEI's extensive development pipeline in Santa Monica, where the company has emerged as one of the city's most active builders over the past five years. The firm has completed several multifamily projects since 2020 and has proposed developments totaling more than 1,000 housing units across multiple sites.
CEI's active Santa Monica pipeline as of 2023-2025 comprises well over 1,000 new apartments across at least six sites, including projects along Wilshire Boulevard, Santa Monica Boulevard, and Pico Boulevard. The company has strategically targeted commercial boulevard locations for redevelopment, consistent with Santa Monica's planning goals to add housing along transit corridors and commercial zones.
Most of CEI's projects seek or have utilized density bonuses under state law, allowing the company to build taller and denser than traditional zoning permits in exchange for including affordable units.
Founded 30 years ago, Cypress Equity Investments specializes in mixed-use apartment complexes, often featuring ground-floor retail. CEO Michael Sorochinsky, a former attorney, has emphasized the firm's "opportunistic" investment strategy, focusing on Class-A apartments in prime urban locations and adapting quickly to market cycles.
The company's aggressive growth strategy has drawn both praise for adding much-needed housing during a regional housing crisis and criticism from residents concerned about overdevelopment. CEI often highlights amenity-rich living in its Santa Monica projects, noting that many residents in its completed developments have opted for car-free commutes given the city's walkability.
However, public sentiment toward CEI in Santa Monica has been mixed, particularly following the company's opposition to Measure GS, a real estate transfer tax approved by voters in 2022-2023 to fund schools and homelessness programs.