Aware Super and Lendlease have acquired US$92m (€73.8m) of land in Los Angeles to build US$600m of mixed-use real estate in the US city.
The 3.5-acre transit-oriented, mixed-use development site at 3401 S La Cienega Blvd is the latest in an ongoing US$2bn joint venture launched by two Australian institutional investors in 2018.
The US Multi-Family partnership was formed to develop and hold primarily multifamily assets in US gateway markets, with Lendlease acting as development, construction and investment manager.
Last year, the partnership acquired new sites in New York and completed projects in Boston and Chicago. The latest project – the partnership’s first in LA – means the portfolio has a total end value of more than US$2.5bn.
Aware Super – the superannuation fund formerly known as First State Super – and developer and fund manager Lendlease will each hold a 50% interest in the LA project.
Located in the Culver City submarket, the 500,000sqft development will provide 260 multifamily residential units, 250,000sqft of creative office space and ground-floor retail.
Lendlease said it aims to submit an application to the City of Los Angeles this year and is expected to commence delivery in 2023 with completion expected in 2025.
Ben Byrne, Lendlease Investment Management portfolio manager, said the project would “benefit from the growing technology, media and entertainment segments in LA and contribute to the urbanisation of Culver City in a positive way”.
He said: “This investment continues the growth and diversification of our portfolio with Aware Super and we continue to look for opportunities across the key US gateway cities.”
Damien Webb, Aware Super’s head of income and real assets, said: “We are excited to expand our successful partnership with Lendlease to the West Coast of the US, in a market that is at the heart of technological innovation.
“This opportunity fits nicely with our overarching strategy in property and we look forward to delivering this high quality new generation project while adding value to our partnership over the long term.”
Arden Hearing, Lendlease Americas executive general manager of West Coast development, said: “Placemaking is at the heart of our business and we are bringing that mindset and capability to LA at this highly-desirable location, which boasts close proximity to entertainment and technology giants HBO, Apple, Amazon and Sony, as well as multimodal transportation options.
“We have been a general contractor in LA for many years and are now eager to expand our investment and development operations in this critical market.”