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CANYON-JOHNSON URBAN FUNDS PARTNERS WITH FIDELIS TO ENTER HOUSTON REAL ESTATE MARKET WITH PURCHASE OF MARQ*E RETAIL CENTER
Fund co-founded by Earvin "Magic" Johnson Eyes Additional Investments in Houston
HOUSTON, Texas (March 14, 2006) - Earvin "Magic" Johnson and Bobby Turner from Canyon Johnson Urban Funds joined with Mayor Bill White and Council Member Toni Lawrence today in announcing Canyon Johnson's acquisition of the 360,000 sq. ft. Marq*E Center in West Houston. This acquisition by Canyon Johnson, the nation's largest real estate investment funds focused on urban revitalization throughout America, is its first ever investment in the Houston area.
The Canyon Johnson team plans to enhance the Marq*E Center by adding new uses that foster a more family-oriented environment. Already, the center is anchored by a large Edwards cinema and IMAX theater, and a Dave & Buster's, and is home to a mix of dining, entertainment and retail establishments.
The Marq*E retail and entertainment complex is located on 35 acres at the northern edge of the Galleria/West Loop district, a rapidly expanding and ethnically diverse area in West Houston. The demographic composition of the communities surrounding the property strongly supports CJUF's mandate to invest in the development and redevelopment of real estate in densely populated, ethnically diverse urban areas. The property is also situated near I-10, one of Houston's major expansion corridors from the intersection of I-610 to the City of Katy.
Canyon Johnson Urban Funds is a joint venture between Canyon Capital Realty Advisors and basketball-legend-turned-entrepreneur Earvin "Magic" Johnson. Based in Los Angeles, the Canyon Johnson funds are the country's largest private real estate funds focused on the development of urban properties. Canyon Johnson's local partner on the acquisition of the Marq*E Center is Fidelis Realty Partners, a full service real estate and investment firm whose senior executives have more than 100 years of combined real estate experience in the Houston area. Fidelis will manage the center day-to-day and work with CJUF to reposition the center.
"We are proud to make the first of what we anticipate will be many investments in the Houston area," said CJUF Managing Partner Bobby Turner. "Acquiring the Marq*E Center is consistent with our approach to fund value-oriented opportunities in urban America. Houston is exactly the type of densely populated, ethnically diverse market in which our fund invests. And the fact that Mayor White and City Council Member Toni Lawrence are committed to revitalization and growth gives us great confidence to invest here."
"When I was in Houston for the NBA All-Star game in February, Mayor White and City Councilmembers encouraged me to find some opportunities for investment," said CJUF Partner Earvin "Magic" Johnson. "Well, it's a month later and Canyon Johnson is here. "We are believers in Houston as a place that is economically growing, healthy, entertaining and the place to be. We are committed to creating opportunities for the people in West Houston, and helping the Marq*E Center reach its upside potential."
The City of Houston has enjoyed significant economic growth as City Hall has become more efficient and business friendly over the past several years. "We've added more than 40,000 new jobs in Houston since October 2004," said Mayor Bill White, "and we are actively seeking partnerships like this one with Canyon Johnson so we can create more economic development opportunities for Houstonians. We're looking forward to enjoying a little of the 'magic' we've heard Canyon-Johnson brings to urban communities throughout America."
"We are also looking forward to working in partnership with Earvin, Bobby and the team at Canyon Johnson, as well as Fidelis' local team to make the Marq*E Center more of a family destination in my district," said Houston Councilmember Toni Lawrence. "CJUF has a stellar track record in urban centers throughout the country, including Chicago, New York, Miami, Atlanta and Los Angeles."
Similar to its approach in those cities, Canyon Johnson will collaborate with government and community leaders and its local development partner, Fidelis, to develop and implement a plan to revitalize and reposition the Marq*E Center. Canyon Johnson will also build out a police storefront with the expectation that safety and security will be enhanced.
"This partnership with Canyon Johnson is a great opportunity for our company and the City of Houston," said Alan Hassenflu of Fidelis. "Together, we plan on moving forward quickly with new plans for Marq*E, and hope to develop additional projects with Canyon Johnson that will help stimulate jobs and economic development activity in other parts of Houston."
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 Fidelis Realty Partners
Fidelis is a full service commercial real estate investment and development firm headquartered in Houston. The partners' almost 40 years combined experience was acquired with their own firm and Trammell Crow Company where they focused on retail development, brokerage, and management. The firm currently owns, manages and leases 300,000,000 square feet of retail product in the Houston area, with an additional 2,000,000 square feet of retail development planned. The portfolio is comprised of neighborhood, community, and power centers.
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Steve Sugerman
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