Cypress Equity Starts 186 Unit Mixed Use Project at 234 Pico Blvd in Santa Monica

Key Points

• Cypress Equity Investments has begun vertical construction on a 186-unit mixed-use development at 234 Pico Blvd in Santa Monica.
• The project includes 11,000 square feet of ground-floor retail and a 346-space parking garage beneath a four and five-story residential building.
• The development uses California density bonus incentives, delivering 19 affordable units in exchange for increased building height and unit count.

What the project includes at 234 Pico Boulevard

Construction is now moving upward at 234 Pico Boulevard in Santa Monica, where developer Cypress Equity Investments is replacing the former Pico Bowl site with a mid-rise mixed-use development. The project will feature 186 apartments built above neighborhood retail space, bringing new housing inventory to one of the most supply-constrained markets in Los Angeles County. The residential mix includes studio, one-bedroom, and two-bedroom apartments, designed to attract renters looking for walkable housing near retail and transit corridors along Pico Boulevard. Ground floor retail will total about 11,000 square feet, creating new storefront space along a corridor that already serves as a commercial spine for the surrounding neighborhood. The development also includes a 346-space parking structure, providing capacity for both residents and retail visitors. The project was designed by KFA Architecture, a Los Angeles firm known for multifamily and urban infill projects across Southern California.

What the density bonus means for development in Santa Monica

The project moved forward through California’s State Density Bonus program, a policy that continues to shape housing development across high-cost cities. In exchange for setting aside 19 apartments as deed-restricted affordable housing, the developer was able to build a larger structure than standard zoning would typically allow. For developers operating in markets like Santa Monica, this incentive structure has become one of the few viable ways to increase unit counts and offset high construction costs. Cities across Los Angeles County are seeing more projects approved through similar programs as policymakers push to increase housing supply while still including affordability requirements. For investors and landlords, this trend is important because density bonus projects often deliver larger multifamily properties on relatively small urban sites.

What replacing Pico Bowl shows about urban redevelopment

The development replaces the long-time Pico Bowl bowling alley, a property that had become an underutilized commercial site in a high-value residential market. Redevelopment of aging commercial uses into housing has become a common strategy in coastal California cities where developable land is extremely limited. Projects like this allow developers to unlock value from older sites while increasing residential density near existing infrastructure and retail corridors. Despite the demolition of the original bowling alley, the project will preserve a piece of local history. Plans call for the iconic Googie-style “BOWL” sign that once stood outside Pico Bowl to be restored and installed at the new property after construction is completed. Preserving recognizable design elements like this has become a common strategy for integrating new development into established neighborhoods.

What the project means for Cypress Equity’s Santa Monica pipeline

The development also reflects the continued expansion of Cypress Equity Investments across Santa Monica. The Brentwood-based developer has delivered hundreds of apartments in the city over the past five years and continues to pursue additional housing developments across the coastal market. Santa Monica remains one of the most difficult places to build new housing in Southern California due to strict zoning rules and long approval timelines. However, projects that successfully secure approvals often command strong long-term rental demand due to the city’s proximity to major job centers, beaches, and high-income neighborhoods. Cypress Equity’s strategy focuses heavily on urban infill multifamily development, particularly sites that can support mixed-use residential projects along active commercial corridors. With several developments underway or planned, the firm is expected to add more than 1,000 housing units to Santa Monica’s supply pipeline in the coming years.

What the new housing supply means for Santa Monica renters and investors

The 234 Pico Boulevard project reflects a broader trend across Los Angeles where developers are converting older commercial properties into higher-density multifamily housing. For renters, the development will bring new housing options to a market with extremely tight supply. For investors and landlords, it reinforces the long-term demand for mid-rise multifamily properties in walkable urban locations, particularly in coastal markets where new construction remains limited. As cities continue to rely on density incentives and mixed-use redevelopment, projects like this are likely to remain a key part of the next wave of housing supply in Southern California.