Proposed Development Could Replace Santa Monica Landmark

A new apartment proposal for the Penguin Coffee Shop site faces a landmark review that could reshape future housing options.

Updated on Oct. 12, 2026 in Commercial

Proposed Development Could Replace Santa Monica Landmark

Live Poll

Should historical preservation in your community take priority over building new apartment developments?

Developer ValueRock has submitted a proposal to replace the aging Penguin Coffee Shop in Santa Monica with an eight-story mixed-use building containing 138 new residential units. The site is currently under scrutiny as the Santa Monica Conservancy and Los Angeles Conservancy seek formal landmark designation for the property.

Why it matters

This clash between new housing development and historic preservation highlights the ongoing tension between meeting residential unit demands and maintaining neighborhood architectural character. The outcome will determine whether the city adds to its housing supply or preserves a structure now over four decades old.

The proposed building spans eight stories and includes 20 studios, 90 one-bedroom units, and 28 two-bedroom apartments. The project is currently navigating a mandatory 75-day municipal review process as required by the city code.

The players

ValueRock

A real estate developer managing commercial and residential construction projects.

Santa Monica Conservancy

An organization dedicated to protecting the historic and architectural heritage of Santa Monica.

Los Angeles Conservancy

A non-profit group that advocates for the preservation of historic buildings across the region.

The details

ValueRock filed a preliminary application under city case number 26ENT-0213, initiating the regulatory pathway for the site's redevelopment. Because the current structure is over 40 years old, the developer must clear city demolition requirements while addressing the conflicting application from preservation groups. If the landmark status is granted, the development may be blocked or significantly modified from its current eight-story design.

December 14, 2026: The Landmarks Commission holds a public hearing on the landmark nomination.

Money Landscape

This project reflects the broader regional effort to densify urban corridors through mixed-use developments that combine retail and residential space. The outcome marks a test of local land-use policies against the ongoing pressure to expand housing capacity.

Residents should monitor local planning updates as the addition of 138 units could impact the local rental market supply and ground-floor commercial rent structures. Those with questions regarding the project's impact on their specific property values should consult a real estate professional.

The takeaway

The development proposal represents a critical junction between urban renewal and historic conservation for the city. Residents should track the December 14, 2026, commission hearing to see how city-wide housing goals weigh against specific landmark protection interests.