Press Releases
CANYON-JOHNSON URBAN FUNDS AND STRUEVER BROS. ECCLES & ROUSE DEVELOP URBAN MIXED-USE PROJECT IN BALTIMORE
New development will improve the vitality and vibrancy of the historic Mount Vernon neighborhood
BALTIMORE (February 21, 2006) - Canyon-Johnson Urban Funds is making a new investment in Baltimore's historic Mount Vernon neighborhood, partnering with local developer Struever Bros. Eccles & Rouse on a $34.6 million urban, transit-oriented, mixed-use development.
The new development, located on the northeast corner of Biddle and North Charles Streets, will consist of 88 for-sale condominiums above over 15,000 sq. ft. of street-level retail and 140 structured parking spaces. The development, along with the historic renovation of two adjacent buildings owned separately by Struever Bros., will be a significant part of the revitalization of the Mount Vernon district. This revitalization of Mount Vernon is being fueled by its rich historic architecture and cultural amenities (including the Meyerhoff Symphony Hall, the Walters Art Museum and the Lyric Opera House), and its access to transportation hubs including Penn Station and Baltimore's Central Business District.
The Mount Vernon project will be the Canyon-Johnson Urban Funds' second venture with Struever Bros. Eccles & Rouse (SBER). In 2005, the Canyon-Johnson Urban Funds (CJUF) and SBER partnered to develop Village Commons, a $90.0 million mixed-use development in Baltimore's Charles Village neighborhood adjacent to Johns Hopkins' Homewood campus. Between the two projects, CJUF and SBER have committed more than $125 million to revitalize Baltimore's neighborhoods.
The development's major equity investor, the Canyon-Johnson Urban Fund II (CJUF II), is a joint venture between Canyon Capital Realty Advisors and basketball-legend-turned-urban-entrepreneur Earvin "Magic" Johnson. Struever Bros. Eccles & Rouse (SBER) is a Baltimore-based developer and general contractor with more than 30 years' experience revitalizing urban neighborhoods. Citibank Community Development, a member of Citigroup, is providing construction financing and a permanent loan for the project.
CJUF Managing Partner and Baltimore native Bobby Turner said, "Canyon-Johnson is proud to be a part of the ongoing revitalization efforts in Baltimore. We strive to work with local partners like Struever Bros. to spur investment and enhance value in urban neighborhoods throughout America. Baltimore and this submarket epitomize the type of densely populated, ethnically diverse communities in which our fund invests. The Mount Vernon neighborhood has a built-in population base which is drawn to it by its proximity to Penn Station and the cultural institutions in the area."
CJUF Partner Earvin "Magic" Johnson said, "The City of Baltimore is making a comeback. The city - from Mayor Martin O'Malley on down - has made it very clear that it is committed to neighborhood revitalization." Johnson added, "We want to be a part of the transformation not only of Charles Village and Mount Vernon but also other areas such as around Coppin State, State Center and other great neighborhoods in the city. The city is really stepping up and supporting developments such as 1209 North Charles."
Struever Bros. Eccles & Rouse is both the developer and the general contractor for the project. The company was founded in 1974 and is a nationally recognized real estate organization engaged in the development, acquisition, construction and management of commercial and residential real estate. "Along with Canyon-Johnson, all of us at Struever Bros. believe that we have a responsibility to redevelop our communities and to create projects in urban areas that address housing and retail needs of these communities in Baltimore and around the country," said SBER President and CEO Bill Struever. "We are tremendously pleased to re-affirm our commitment to the City of Baltimore and the Mount Vernon neighborhood with this new mixed use development. We are especially pleased about the opportunity because the seller of the land is Aegon, a company with its U.S. headquarters adjacent to the site and a vital ally and stakeholder in the ultimate vision for the neighborhood. Without Aegon, this development would not have become a reality."
Citibank Community Development is providing a senior construction loan for the project. Andrew Ditton, Managing Director, added, "Citibank Community Development is very pleased to be part of the partnership that is making this urban in-fill project possible and to provide financing for the development. It reflects our commitment to revitalize communities by creating new homeownership opportunities and retail establishments, as well as our commitment to help make communities where we do business better places to live and work."
Construction is expected to begin in February and project completion is expected in 18 months. The marketing agent for the condominiums is McWilliams Ballard. The architect for the development is Design Collective, Inc. of Baltimore, Maryland.
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's Johnson Development Corporation, 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, Baltimore, Brooklyn, Chicago, Cleveland Heights, Las Vegas, Los Angeles, Miami, Milwaukee and San Diego.
About Struever Bros. Eccles & Rouse
Struever Bros. Eccles & Rouse (SBER) has been restoring urban landmarks and preserving the infrastructure that defines America's traditional downtown centers since 1974. SBER has a long-standing and prestigious record of success as an unequalled urban development and construction company. Nationally recognized for conquering challenging locations and complicated projects as a multi-role developer, builder and construction manager, the firm has an intentional focus on urban transformation, adaptive reuse and mixed-use redevelopments. With more than $2.3 billion in total investment in Baltimore, SBER has developed more than 18 million sq. ft. of commercial, residential and retail space for some of the nation's corporate leaders including Morgan Stanley, Brown Advisory Group and Johns Hopkins. While the company's projects populate Baltimore, its recognition for quality has reached communities in Delaware, Rhode Island, Pennsylvania, North Carolina, Massachusetts, New York and Tennessee. Struever Bros. Eccles & Rouse prides itself in discovering hidden value where no one else may see it-revitalizing urban American neighborhoods as it builds an international reputation for excellence through quality, creativity and commitment to the community through its triple-bottom-line approach to business.
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Media Contacts:
Steve Sugerman or Heather Herndon
310-689-7535
steve@sugermangroup.com
heather@sugermangroup.com
www.sugermangroup.com
Bob Rubenkonig
443-573-4444
b.rubenkonig@sber.com
www.sber.com
