LOS ANGELES--(BUSINESS WIRE)--LaTerra Development, a Los Angeles-based developer of urban infill mixed-use properties, today announced the formation of a programmatic joint venture with QuadReal Property Group, a global real estate company. The venture will invest up to $250 million in equity to develop and operate multifamily communities in Southern California with a focus on Greater Los Angeles.
The venture has closed on two land acquisitions, the first being for the development of 573 apartment homes adjacent to a transit stop in downtown Burbank at 777 N Front Street, Burbank, CA. Burbank is home to a significant and robust employee base, driven by leading media companies such as Disney and Warner Brothers. This project will help to alleviate the city’s supply-demand imbalance – only one apartment project has been built in Burbank in over 20 years, giving Burbank the highest jobs to housing ratio of any city in California.
The second land site is for the development of 71 apartment homes in West Hollywood at 7617 Santa Monica Blvd, West Hollywood, CA. This boutique project will cater to the West Hollywood submarket, with a location that is highly central and walkable to both employment and lifestyle destinations. Prospective residents will enjoy 360 degree views of West Hollywood from the rooftop pool. The venture is expected to break ground on the site in 2020. Both projects bring affordable housing components to their respective communities – 69 homes for Burbank and 11 homes for West Hollywood.
"QuadReal is a well-respected, world class organization with whom we are honored to partner for our new build to core strategy in Los Angeles, one of the best apartment markets in the country," said Charles Tourtellotte, chief executive officer for LaTerra Development. “Los Angeles is at the center of the 'techtainment' boom – the intersection of technology and entertainment– but apartment supply has failed to keep pace. The Burbank and West Hollywood markets exemplify this trend, making these two projects excellent assets with which to seed the venture.”
Tim Works, Managing Director, Americas for QuadReal, added: "We are pleased to form this relationship with LaTerra, which has extensive development experience in the Los Angeles market. Los Angeles has extremely high barriers to entry, and we are excited to partner with a local operator that has significant entitlement expertise and reach into the local market. Burbank and West Hollywood are sites that LaTerra spent years entitling, allowing QuadReal to immediately gain access to two of the best submarkets in Los Angeles.”
Jonathan Dubois-Phillips, President, International for QuadReal, reinforces the company’s conviction about this strategy, with this timing: “Investing in global markets with constrained housing supply encourages our investment of time and resources, especially when demand is strong and increasing. Our convictions and commitments are long term focused. We aim to see beyond short term dislocations if not seek opportunity within them.”
Consistent with LaTerra and QuadReal’s objectives of building sustainable and green communities, the projects will include features such as electric vehicle charging stations, solar panel integration, and participation in the Energy Star program. Burbank will be LEED Gold certified.
Macquarie acted as exclusive financial advisor and global placement agent on behalf of LaTerra in connection with the formation of the joint venture.
About LaTerra Development, LLC.
LaTerra Development is a privately owned, Los Angeles based full service multifamily development company focused on urban infill properties in Southern California. Our mission is to create dynamic multifamily and mixed-use developments that provide positive fiscal impacts to neighborhood communities, while utilizing designs that incorporate green building practices and sustainable materials. LaTerra is one of the most active residential development companies in California, with projects in such notable markets as Santa Monica, Los Feliz, Mar Vista, Burbank, Hollywood, West Hollywood, Echo Park and Silver Lake. LaTerra’s primary investment and development activities include acquiring land, processing entitlement approvals and developing, constructing and operating multifamily development projects.
Headquartered in Vancouver, Canada, QuadReal Property Group is a global real estate investment, operating and development company. QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada's largest asset managers with a $153.4 billion portfolio. QuadReal manages a $37.6 billion portfolio spanning 23 Global Cities across 17 countries. The company seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves.
About Macquarie and MIRA Real Estate
MIRA Real Estate is a global real estate manager, investor and adviser focusing on listed and unlisted funds and asset management, real estate platform and direct investment and private capital markets transactions services. MIRA Real Estate has a global network of over 200 people around the world and, as at 30 September 2019, managed assets of approximately $US20 billion across its funds and platform investments.
MIRA Real Estate is part of Macquarie Infrastructure and Real Assets (MIRA), one of the world’s leading alternative asset managers. For more than twenty-five years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 30 September 2019, MIRA managed approximately $US136 billion in assets that are essential to the sustainable development of economies and communities, including; 156 portfolio businesses, ~600 properties and 4.7 million hectares of farmland.
None of the entities noted in this release is an authorized deposit-taking institution for the purposes of Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46008583542 (“MBL”). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities.
To learn more about Macquarie, visit www.macquarie.com.