Los Angeles-based multifamily development company LaTerra Development and QuadReal Property Group, a global real estate company based in Vancouver, Canada, have formed a joint venture to invest up to $250 million to develop multifamily communities in Southern California with a focus on Greater Los Angeles.
The joint venture has already closed on land acquisitions for projects in Burbank and West Hollywood. In Burbank, the venture plans to develop 573 apartment units at 777 N. Front Street near a downtown transit stop. The venture, noting that Burbank has only had one apartment project built in the past 20 years, said the community, home to media companies including Disney and Warner Brothers, has the highest jobs-to-housing ration of any city in California. In West Hollywood, the venture plans to break ground in 2020 on a 71-apartment project at 7617 Santa Monica Blvd. According to the companies, both projects will include affordable housing components, with 69 affordable units in Burbank and 11 in West Hollywood.
Both projects are slated to include sustainable features such as electric vehicle charging stations and solar panels. The venture will seek LEED Gold certification for the Burbank property.
"Los Angeles is at the center of the 'techtainment' boom—the intersection of technology and entertainment– but apartment supply has failed to keep pace," said Charles Tourtellotte, chief executive officer of LaTerra Development, in prepared remarks. "The Burbank and West Hollywood markets exemplify this trend, making these two projects excellent assets with which to seed the venture," he said.
Tim Works, the managing director, Americas for QuadReal, added that LA "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," Works said.
Macquarie acted as the exclusive financial advisor and global placement agent for LaTerra on the formation of the joint venture.
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Ross Todd
Ross Todd is the Editor/columnist for the Am Law Litigation Daily. He writes about litigation of all sorts. Previously, Ross was the Bureau Chief of The Recorder, ALM's California affiliate. Contact Ross at [email protected]. On Twitter: @Ross_Todd.
