Century City-based LaTerra Development has created a self-storage development platform with plans to deploy as much as $300 million on self-storage developments.
The platform is a joint venture with funds managed by Sydney-based Macquarie Asset Management.
“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,” Eric Wurtzebach, senior managing director and head of real estate for the Americas at Macquarie Asset Management, said in a statement. “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 has already started three projects in the L.A. area and is looking at other sites. The projects underway are a 55,000-square-foot facility in Mar Vista, a 63,000-square-foot space in Van Nuys, and a 77,000-square-foot facility in the North Hollywood/Burbank area.
“Self-storage is complementary to our core apartment development business,” Chris Tourtellotte, managing director for LaTerra Development, said in a statement. “Self-storage is part of the neighborhood ecosystem and supports housing density and small businesses, a primary goal for LaTerra.”
John Wilson has been hired as the vice president of asset management for LaTerra and is the company’s first dedicated storage professional. He was previously at Storage West for 12 years and Glendale-based Public Storage for 13 years.
The self-storage market has been growing. In 2020, the market was valued at $48.02 billion, and is expected to reach $64.71 billion in 2026, according to market and consumer data company Statista.
“Self-storage continues to demonstrate its resiliency across the cycle,” Tourtellotte said in a statement. “The pandemic accelerated demand as people relocated and cleared rooms to make way for home offices while small businesses stored inventory, excess furnishings and other items. Los Angeles has the lowest existing supply of self-storage per capita of almost any city in the United States. We think it’s an ideal time to launch this new platform.”
