Press Releases
CANYON-JOHNSON URBAN FUNDS AND THE DERMOT COMPANY PURCHASE BROOKLYN'S TALLEST BUILDING FOR CONDOS AND RETAIL
Conversion of historic bank building will continue Downtown's revitalization
BROOKLYN, N.Y. (May 17, 2005) - A partnership between the Canyon-Johnson Urban Funds and The Dermot Company has purchased the Williamsburg Savings Bank Building and plans to renovate and convert the landmark 35-story tower into condominiums and ground-floor retail space. The project, called One Hanson Place, will continue the ongoing revitalization of Downtown Brooklyn into a 24-hour urban community.
Purchased from HSBC, Brooklyn's tallest building has been a feature of the borough's skyline and the Fort Greene neighborhood since 1927. It is adjacent to Atlantic Terminal, New York City's third-largest mass transportation hub, and near such amenities as MetroTech Center, the Brooklyn Museum of Art, the Brooklyn Academy of Music and the proposed arena for the NBA's New Jersey Nets. A copper dome and one of the world's largest four-sided clock towers adorn the historical landmark building, which offers unobstructed views of Manhattan and all of Brooklyn.
One Hanson Place is the first investment for Canyon-Johnson Urban Fund II, a $600 million closed-end real estate fund managed by a partnership between Canyon Capital Realty Advisors LLC and Earvin "Magic" Johnson's Johnson Development Corporation, both based in the Los Angeles area. The investments of the first fund, CJUF I, have been catalysts for more than $1 billion in urban redevelopment in major U.S. cities. One Hanson Place is Canyon-Johnson's second Brooklyn project; CJUF I is an investor in Park Place, a mixed-use development of condos, retail and parking currently under construction in the borough's Park Slope neighborhood.
"We couldn't have found a better project or partner to launch Canyon-Johnson's second urban fund," said CJUF Managing Partner Bobby Turner. "One Hanson Place will help meet the tremendous demand for market-rate housing and community-serving retail while maintaining the historical integrity of this celebrated landmark building. Moreover, Dermot's extensive track record and commitment to urban development will ensure the success of this great project." Earvin "Magic" Johnson added, "We are believers in Brooklyn as a place that is economically growing, healthy, entertaining and the place to be. By bringing high-quality residential and retail components together, One Hanson will bring about even further revitalization to the already vibrant Brooklyn community."
Canyon-Johnson's partner, The Dermot Company, is an experienced New York developer, having developed more than 4,000 multi-family units over the past 13 years. "One Hanson is a prime example of the type of urban infill development that The Dermot Company is trying to promote," said William Dickey, President of Dermot. "We are proud to unite with the Canyon-Johnson Urban Fund in this exciting venture, and we are excited to find a capital partner that shares our vision and commitment: that our project can contribute greatly to the neighborhood growth and business development in downtown Brooklyn. The people and process at Canyon truly define a value-added partnership."
The New York City Employee Retirement Funds-New York City Employees' Retirement System,
Teachers' Retirement System, New York City Police Pension Fund and New York City Fire Department Pension Fund-are among the investors in Canyon-Johnson Urban Fund II and, thus, One Hanson Place.
New York City Comptroller William C. Thompson, Jr. said, "One Hanson epitomizes the double-bottom-line agenda we have set forth for the City's retirement funds: to do good for the people of New York and to do well financially for the City's pension plans. By making smart, profitable investments like One Hanson, we have created a win-win formula for success."
Financing for the project was provided by Citibank's Community Development Group. "We are truly pleased to be both an equity investor in Canyon-Johnson Urban Funds and the construction lender for the One Hanson Place redevelopment. Dermot Company and Canyon-Johnson are terrific partners with strong track records of successful large-scale urban developments," said Andrew Ditton, Director of Citibank Community Development.
The architect for the renovation is H. Thomas O'Hara, a New York-based firm specializing in high-rise residential/mixed-use buildings and conversions of existing buildings. Kajima Construction Services Inc., the fourth largest contractor in the world, is managing preconstruction work.
The transaction closed May 16, 2005. Cushman & Wakefield was the seller's broker, and equity financing was arranged by Pantheon Financial. Corcoran Realty will serve as the residential sales team, with units projected to become available for purchase in Summer 2006.
About Canyon-Johnson Urban Funds
The Canyon-Johnson Urban Funds (CJUF) are the country's largest private real estate funds focused on the development of urban properties in underserved neighborhoods. A joint venture between Canyon Capital Realty Advisors and Earvin "Magic" Johnson, the funds were formed to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. The Funds' objectives are to seek current income and capital appreciation and, in addition to meeting investment goals, the funds are committed to providing for and fostering economic opportunities for the residents of the urban neighborhoods in which CJUF invests. With nearly $1 billion in committed equity capital, the funds are positioned to facilitate more than $4 billion in development and revitalization in major U.S. metropolitan areas. To date, projects have been undertaken in Atlanta, Brooklyn, Chicago, Cleveland Heights, Las Vegas, Los Angeles, Miami, Milwaukee and San Diego.
About The Dermot Company
Formed in 1991 by William P. Dickey, The Dermot Company and its affiliate entities comprise a fully integrated real estate investment and management company focused on multi-family residential opportunities. Dermot currently has $300 million in assets under management and owns or holds investments in, and manages, 4,000 multi-family units, with more than 1,000 additional units in the development pipeline. Headquartered in Manhattan, Dermot has extensive experience in complex multi-family development projects in New York.
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Media Contact:
Steve Sugerman
310-689-7535
steve@sugermangroup.com
www.sugermangroup.com
