Investment Criteria — Canyon Johnson Urban Funds

CJUF focuses on providing both equity and debt capital to investments that meet the following criteria:

Retail, office, residential (rental, student housing, condominium), mixed-use, industrial, hospitality and commercial

Urban centers, typically characterized by density (greater than 250,000 people within 5-mile radius) and ethnic diversity

Prefer zoning and entitlements in place

EQUITY
- Investment Size: $15 million to $200 million of Canyon equity
- Partner Co-Invest: Meaningful cash contribution
- Maximum Bank Leverage: 75%
MEZZANINE*
- Loan Size: $15 to $200 million
- Maturity: Up to 5 years
- Security: 100% pledge of ownership and/or 2nd lien
- LTC: Up to 80%
- Equity Participation: Negotiable
- Uses: Acquisitions, Pre-Development, Construction, Recapitalization, Refinancing, Liquidity Management, Asset/Liability Management
  
  * also may be structured as preferred equity
SENIOR SECURED AND CONSTRUCTION LOANS
- Loan Size: $15 to $200 million
- Maturity: Up to 5 years
- Amortization: Typically not required
- Security: 1st Mortgage Lien
- LTC: Up to 70%
- Equity Participation: Negotiable
- Property Types: All
- Uses: Acquisitions, Pre-Development, Construction, Recapitalization, Refinancing, DIP Financing, Liquidity Management, Asset/Liability Management
NOTE PURCHASES
- Loan Size: $15 to $200 million
- Status: Performing, non-performing, or defaulted
- Seller: Banks, Funds, REITs, Servicers, Insurance Cos, etc
- Uses: Liquidity Management, Asset/Liability Management, Rating Agency Requirements, REMIC Regulations