Developer Defaults on $37.5M Loan for Third Street Promenade Property in Santa Monica

Santa Monica, CA - December 30, 2025 Entities linked to Beverly Hills-based developer Leo Pustilnikov and his partners Ely Dromy and Eli Taban have defaulted on a $37.5 million loan secured by a retail building on Santa Monica's iconic Third Street Promenade, according to Los Angeles County records.The five-story, approximately 30,000-square-foot property at 1315 Third Street Promenade was reported past due by about $39 million as of early November. The building currently houses Holey Moley Golf Club, a mini-golf and cocktail bar that opened earlier this month.

The default adds to ongoing financial pressures on the Third Street Promenade, a pedestrian shopping district that has faced declining foot traffic, rising vacancies, and store closures since the COVID-19 pandemic.

Pustilnikov, Dromy, and Taban have previously collaborated on Promenade-area acquisitions, including a nearby AMC theater purchased in 2022. Pustilnikov has also faced prior loan issues on other Promenade properties, including a separate default reported last year on storefronts at 1241-1247 Third Street Promenade.en.wikipedia.org

The news follows broader distress in the area, including Macerich's surrender of the adjacent Santa Monica Place mall to its lender last year after a $300 million default. City officials have approved measures aimed at revitalization, such as expanded outdoor drinking zones, but challenges persist.Representatives for the borrowers did not immediately respond to requests for comment.