Los Angeles-based apartment development company LaTerra Development has established a self-storage development platform and formed a joint venture with a fund managed by Macquarie Asset Management.
The joint venture plans to deploy up to $300 million in self-storage developments initially concentrated in Los Angeles and other Southern California markets.
“Self-storage is complementary to our core apartment development business,” said Chris Tourtellotte, Managing Director for LaTerra Development, one of the largest multifamily developers in the Los Angeles Metro Area with approximately 3,000 apartments currently in the pipeline.
“Self-storage is part of the neighborhood ecosystem and supports housing density and small businesses, a primary goal for LaTerra,” Tourtellotte added.
LaTerra plans to develop ground-up self-storage facilities. The company is underway with its first three projects: 55,000 square feet in Mar Vista, CA; 63,000 square feet in Van Nuys, CA; and 77,000 square feet in the North Hollywood/Burbank, CA area.
The firm is actively seeking other sites, according to Tourtellotte.
“We are delighted to be involved in this platform with one of the leading developers in Southern California with deep market expertise and off market deal sourcing capabilities,” said Eric Wurtzebach, Senior Managing Director and Head of Real Estate, The Americas, Macquarie Asset Management. “We believe this represents a stable, long-term investment opportunity with a high-quality partner, with the potential to deploy further capital beyond our initial commitment.”
LaTerra hired John Wilson as a Vice President of Asset Management as its first dedicated storage professional. Wilson was previously at Storage West for 12 years and Public Storage for 13 years. LaTerra will continue to build a market-leading self storage team.