LaTerra Development and Macquarie Asset Management are teaming up to deploy up to $300 million for self storage developments throughout Southern California and beyond. The two companies formed a joint venture to develop ground-up self-storage facilities in Los Angeles particularly, with plans to expand the portfolio’s reach later on.
The joint venture already has three projects in the pipeline, including a 55,000-square-foot project in Mar Vista, a 63,000-square-foot project in Van Nuys, and a 77,000-square-foot project in North Hollywood/Burbank.
Chris Tourtellotte, managing director for LaTerra Development, told Multi-Housing News that the company expects to break ground on all three projects in the second half of 2023 with expected completions in the second half of 2024. When the funds are fully deployed, the portfolio is expected to be valued at approximately $750 million in total development costs, Tourtellotte told MHN.
“As a result of the pandemic, people are converting part of their homes or apartments into home offices, so that’s created a need for self storage,” Tourtellotte also told MHN.
SOUTHERN CALIFORNIA EXPANSION PLANS
Tourtellotte also told MHN that the joint venture is currently looking at more sites in Southern California, with an emphasis on Los Angeles County, for near-future projects.
“LA has a low square foot per capita, which means many of these neighborhoods are underserved for self storage,” Tourtellotte told MHN. “So there’s a great opportunity in LA to provide self storage to these neighborhoods which will help the neighborhood ecosystem and help housing at higher densities.”
The firm is also currently interested in markets like the Inland Empire, Riverside County, Orange County and the San Diego metro, Tourtellotte told MHN. Beyond those markets, Tourtellotte added that there are plans to expand into other California markets and select Sun Belt markets down the pipeline.