A proposed eight-story development could replace one of Santa Monica’s most recognizable examples of midcentury roadside architecture.

The owner of the property at 1670 Lincoln Boulevard, currently occupied by Mel’s Drive-In, has submitted plans for a mixed-use building containing 138 apartments, ground-floor commercial space, and parking.

The proposal would demolish the restaurant building, originally constructed in 1959 as the Penguin Coffee Shop.

The redevelopment has not been completed or approved, and preservation advocates are pursuing local landmark designation.

The story raises two questions: how should Santa Monica accommodate more housing, and what happens when a housing proposal involves a building with architectural and cultural significance?

What is proposed at 1670 Lincoln Boulevard?

The property owner, ValueRock Realty, filed an application for an eight-story mixed-use development.

The proposal includes 138 studio, one-bedroom, and two-bedroom apartments, approximately 5,667 square feet of ground-floor commercial space, and parking for 123 vehicles.

Plans also include a rooftop deck and central courtyard. Ottinger Architects is responsible for the proposed design.

These details describe the current proposal, not final approvals or a guaranteed construction program.

Will Mel’s Drive-In be demolished?

The current redevelopment proposal calls for demolition of the restaurant building. That does not make demolition inevitable.

The project faces applicable review and approval processes. There is also an active effort to obtain historic landmark designation.

The Santa Monica Conservancy and Los Angeles Conservancy have supported preservation.

According to preservation organizations, a landmark hearing is scheduled for December 14, 2026. The outcome could influence what happens next.

Why is the building historically significant?

The restaurant originally opened in 1959 as the Penguin Coffee Shop.

It was designed by Armet & Davis, a firm associated with Southern California’s Googie style.

Googie architecture is known for expressive rooflines, prominent signage, extensive glass, and design elements reflecting midcentury optimism and automobile culture.

These buildings were designed to attract attention from passing drivers. The Penguin’s architecture and signage made it recognizable along Lincoln Boulevard.

The property later served other uses before operating as Mel’s Drive-In. For preservation advocates, the concern is losing a surviving example of regional architectural history, not simply another restaurant.

What is Googie architecture?

Googie is a modernist commercial architectural style associated with postwar Southern California.

It often features dramatic angles, large windows, expressive signs, and references to technology, movement, or the Space Age.

Coffee shops, diners, bowling alleys, and roadside businesses used the style to stand out.

That makes these buildings part of the region’s commercial history, but creates preservation challenges: many occupy valuable commercial sites along major corridors.

The visibility that made the buildings successful can also make the land attractive for redevelopment.

Why is this site attractive for housing?

The property is near Lincoln and Olympic boulevards, close to the Santa Monica Freeway and a corridor that has seen substantial multifamily development.

The proposed project sits south of a recently completed mixed-use building at 1650 Lincoln Boulevard.

Urbanize LA reports multiple housing projects completed along Lincoln Boulevard during the past decade.

This is not an isolated proposal to add housing to an unchanged street. It is part of a broader pattern of redevelopment along a major Santa Monica corridor.

How much affordable housing is proposed?

The current application identifies 14 apartments intended for very low-, low-, and moderate-income households.

The project seeks density-bonus incentives and other regulatory allowances associated with income-restricted housing.

The precise affordability mix, income limits, and final project conditions should be checked against city approval documents.

A project containing 138 apartments is not necessarily a project containing 138 affordable apartments. That distinction matters when evaluating its effect on housing access.

Could the development help housing supply?

Yes, if it proceeds. The proposed building would add a substantial number of apartments to a relatively small commercial site.

New residents could live near employment, retail, restaurants, and regional transportation. Additional households may also support nearby businesses.

But those benefits do not guarantee that the project solves affordability challenges.

New construction is expensive. Eventual rents, financing, and market conditions will determine how the building competes with existing housing.

What is the preservation argument?

Preservation advocates argue the building has architectural value independent of its current restaurant use.

They emphasize the original design, distinctive signage, and place in Santa Monica history. They also point to examples where historic buildings were incorporated into larger projects.

Could this site accommodate additional housing while preserving some or all of the structure? It is worth investigating, but not every alternative is technically or financially feasible.

Structural condition, site configuration, code requirements, costs, and development capacity all matter.

What is the argument for redevelopment?

Santa Monica faces substantial housing demand, and commercial corridors can offer opportunities for additional residents.

A relatively low-density commercial property may support far more housing than exists today.

From that perspective, the question is whether preserving one historic building should outweigh the opportunity to add more than 100 homes.

That is a legitimate policy consideration. It does not erase the building’s architectural value.

It illustrates the tension between preserving neighborhood character and increasing housing supply.

Could both objectives be accommodated?

Potentially, but no particular alternative should be assumed feasible without design and financial analysis.

A project might preserve a historic structure while adding construction elsewhere on the parcel. Other developments have done something similar.

Whether that works here depends on site dimensions, building configuration, parking, access, structure, and economics.

Preservation groups have identified examples in Santa Monica, but those examples do not prove the same approach works at 1670 Lincoln Boulevard.

What does this mean for nearby property owners?

Large redevelopment proposals can change how buyers perceive a neighborhood.

Some welcome housing, new retail, and investment. Others worry about construction, height, traffic, or losing a familiar landmark.

Effects depend on proximity. A condominium overlooking the site has different considerations from a house several blocks away.

I would not claim this proposal automatically increases or decreases nearby property values. The relationship between the project and each property matters.

What should buyers investigate near Lincoln Boulevard?

Start with surrounding land use. What is already under construction? Which parcels have active applications? What zoning applies to neighboring lots?

Are historic preservation issues involved? How much of the street may change in coming years?

These questions are particularly relevant for condominium buyers who value a current view or streetscape without realizing adjacent parcels may be redeveloped.

The condition of a neighborhood today is not necessarily its permanent condition.

Does this show Santa Monica is becoming denser?

It is another example of development pressure along commercial corridors.

Santa Monica has limited land area and demand for housing near jobs and amenities. That creates incentives to redevelop some lower-density sites.

Density is not distributed evenly. Some neighborhoods remain predominantly low-rise residential, while major corridors accommodate larger buildings.

Lincoln Boulevard is one place where that difference is visible.

What happens next?

Watch two processes: city review of the proposed 138-unit project and the historic landmark nomination.

The preservation hearing is scheduled for December 14, 2026.

A landmark decision, project redesign, entitlement approval, or construction announcement could justify updating this article.

For now, the redevelopment is proposed, the building has not been demolished, and the final outcome remains uncertain.

Frequently asked questions

Is Mel’s Drive-In closing? The application proposes demolition, but a confirmed closure or demolition date has not been established in the reviewed sources.

How many apartments are proposed? 138.

Where is the property? 1670 Lincoln Boulevard in Santa Monica.

How old is the building? It originally opened in 1959.

Is it a designated landmark? A nomination is pending; nomination is not the same as designation.

When is the landmark hearing? Preservation groups identify December 14, 2026.

Is the project approved? The current reporting describes a submitted proposal, not a final approval.

Paul's take

Both sides of this proposal raise legitimate considerations. Santa Monica needs housing, but buildings like the former Penguin Coffee Shop contribute to Southern California’s architectural identity.

I would not automatically conclude preservation should prevent redevelopment. I also would not assume demolition is the only way to create housing.

What alternatives are physically possible? What would they cost? How much housing could each produce? Which architectural features could be retained?

For buyers and owners, neighborhood change is about more than new buildings. It also involves deciding which parts of local history to preserve.

Talk with Paul Adams II

If you are considering buying or selling in Santa Monica, I can help you evaluate the property alongside nearby development activity, comparable sales, and the neighborhood considerations that may affect your decision.

Schedule a conversation