401-Unit Mixed-Income Project Proposed Near Bergamot Station as Santa Monica Pushes Housing Growth

Key Points

• A new 401-unit mixed-income residential project is proposed at 1655 26th Street in Santa Monica.
• The plan includes ground-floor retail and density bonus incentives to deliver affordable housing.
• The site sits near Bergamot Station Arts Center, a key redevelopment focus for the city.

Another Major Housing Proposal for Santa Monica

Santa Monica’s push to add housing inventory continues with a sizable new proposal near the city’s evolving Bergamot Station district. A newly filed application calls for demolishing a low-rise office complex at 1655 26th Street and replacing it with an eight-story residential building featuring apartments above ground-floor retail.

The property is owned by 1655 Property LLC, an entity linked in state records to local philanthropist Hillel Kellerman. The proposal reflects a broader trend in Santa Monica toward higher-density, mixed-income projects that leverage state density bonus laws to unlock additional units. Below is how the project is structured and why it matters for investors and landlords tracking Southern California infill development.

Project Scope and Unit Mix

The proposed development would deliver 401 apartments, including studio, one-, and two-bedroom layouts. Of those units, 41 would be designated as affordable housing for moderate-, low-, and very-low-income residents, allowing the developer to exceed standard zoning limits. The building would also include approximately 2,070 square feet of ground-floor retail, reinforcing Santa Monica’s preference for active streetscapes rather than single-use residential blocks. Plans call for 419 parking spaces and a rooftop deck, balancing density with tenant amenities in a car-conscious coastal market.

Location Near a Key Redevelopment Node

The site sits just around the corner from Bergamot Station Arts Center, an area the city has identified as a long-term opportunity for mixed-income housing and cultural reuse. Santa Monica officials have already begun seeking developers for affordable housing projects on nearby city-owned land, signaling sustained political momentum for residential growth in this pocket. For investors, proximity to Bergamot Station adds long-term upside tied to transit access, cultural draw, and future redevelopment activity.

Part of a Broader Development Wave

The 26th Street proposal is not happening in isolation. Santa Monica has seen a growing pipeline of projects combining residential density with retail and affordability. Recently, Trammell Crow Company proposed a separate eight-story project at 2716 Ocean Park Boulevard with 456 units, including 46 affordable apartments and more than 6,000 square feet of retail. In another case, city officials approved an eight-story development on Wilshire Boulevard featuring affordable housing above retail and multiple levels of subterranean parking.

Together, these projects point to a clear pattern. Santa Monica is using density bonuses and mixed-use formats to push housing production without abandoning its retail base.

What It Means for Owners and Investors

For landlords and long-term investors, these developments support several key themes. Increased housing supply helps stabilize rent growth without collapsing pricing. Ground-floor retail preserves walkability and tenant appeal. Density bonuses reduce entitlement friction while improving project economics. Importantly, many of these projects replace underperforming office assets, a trend gaining traction across coastal California as office fundamentals remain challenged.

Bottom Line

The proposed 401-unit development at 1655 26th Street underscores Santa Monica’s evolving housing strategy. By pairing density bonuses, mixed-income units, and retail activation near Bergamot Station, the city is signaling that large-scale residential infill is not only acceptable but encouraged. For investors watching where entitlement risk is easing in California, Santa Monica is quietly becoming one to watch.