Proposed Apartment Complex Faced Landmark Challenge
The former Penguin Coffee Shop site could be replaced by 138 new homes, but preservationists have stepped in to save the building.
Updated on Oct. 12, 2026 in Commercial
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A developer has filed a proposal to demolish the former Penguin Coffee Shop in Santa Monica to make way for an eight-story residential and retail building. Preservation groups are now seeking to designate the structure as a landmark, initiating a potential conflict over the future of the 40-year-old site.
Why it matters
The outcome of the landmark application will determine whether the property is preserved for its architectural history or redeveloped into a high-density apartment complex. This battle reflects ongoing tensions in the area as city officials weigh the demand for new housing against the preservation of existing structures.
The proposed eight-story development includes 20 studios, 90 one-bedroom units, and 28 two-bedroom units, along with 5,667 square feet of retail space. The site's current structure, which is over 40 years old, is now subject to a 75-day municipal review process.
The players
ValueRock
A real estate development firm focused on identifying and acquiring sites for high-density, mixed-use redevelopment projects.
Santa Monica Conservancy
A local nonprofit organization dedicated to identifying and protecting historically significant architecture throughout the city.
Los Angeles Conservancy
A regional historic preservation organization that works to save and revitalize the diverse architectural heritage of the county.
The details
ValueRock filed preliminary application 26ENT-0213 for the development, triggering a regulatory review period under Santa Monica municipal code. To block the demolition, the Santa Monica Conservancy and Los Angeles Conservancy filed a competing application to protect the site as a historic landmark. A public hearing will be required to resolve whether the project can proceed as planned or if the building's historical status prevents the proposed demolition.
Timeline
December 14, 2026: Landmarks Commission holds a public hearing on the landmark nomination.
The Home Front
This dispute highlights the friction between regional mandates for increased housing density and the local efforts to maintain neighborhood character through historic preservation. The project currently sits at the intersection of evolving land-use regulations and long-standing landmark protections.
Residents living near the site should track the upcoming hearing for potential updates on construction timelines or neighborhood impacts. Homeowners interested in how similar projects proceed can monitor the Santa Monica planning commission schedule for updates on this specific case.
The takeaway
The proposed redevelopment highlights the ongoing competition for space in urban residential corridors. Neighbors should mark their calendars for the December 14, 2026, commission hearing to stay informed on the site's future.
Further reading
Learn more about the latest Commercial developments in the area.
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Should historical preservation in your community take priority over building new apartment developments?
