LaTerra Development has joined forces with QuadReal Property Group to invest up to $250 million in equity for the development and operation of apartment properties in Southern California. The new joint venture will enable LaTerra to move forward with a pair of projects in Burbank and West Hollywood, which are slated to bring a total of 644 multifamily units to the Los Angeles area.
Macquarie acted as financial advisor and global placement agent on behalf of LaTerra in the formation of the JV, which has closed on two land acquisitions, including a 573-unit community at 777 N. Front St. in downtown Burbank and a 71-unit property at 7617 Santa Monica Blvd. in West Hollywood. The Burbank project will include 69 affordable homes and the West Hollywood community will have 11 affordable units.
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The Burbank City Council last December voted to approve LaTerra’s plans for the first project, which will include two buildings of seven and eight stories with 252 units and 321 units, respectively, along with a seven-story, 307-room hotel. The lot for the proposed development, which has stood vacant since 1991, sits next to the Golden State Freeway and a Metrolink station offering connectivity to Los Angeles Union Station.
The community would represent only the second apartment property to be built in Burbank in more than 20 years, helping to address a serious housing shortage in the city. Burbank, home to media companies such as Disney and Warner Bros., has the highest jobs-to-housing-ratio of any city in California, according to a statement by the JV partners.
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The West Hollywood project received the green light from the city’s planning commission this past January. The boutique four-story retail and residential property will occupy a central site with walkability to establishments such as Whole Foods Market and WeWork, a short drive away from well-known Hollywood landmarks. The community will also feature a rooftop pool. LaTerra and QuadReal are expected to break ground on the site this year.
Canadian real estate investment firm QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corp. (BCI). The company teamed up with developer Mill Creek Residential in April in a $421 million joint venture to build and operate multifamily communities in select U.S. markets over the next two to three years.