Press Releases
CANYON-JOHNSON URBAN FUND MAKES FIRST INVESTMENT IN WASHINGON, DC; TEAMS WITH LOCAL PARTNER FAISON
Partnership, which includes the real estate fund co-founded by Earvin "Magic" Johnson, to develop the first condominiums in the Near Southeast submarket in recent history
WASHINGTON, DC (August 2, 2006) - The Canyon-Johnson Urban Fund is making its first ever investment in the Washington, DC market by partnering with Faison of Charlotte, North Carolina, on the development of a transit-oriented condominium project next to the Navy Yard Metro station in the Near Southeast submarket. The site sits only blocks from the new Washington Nationals Baseball Stadium, which is expected to open in the spring of 2008.
Located on the corner of 1st and L Streets, the project will be the first condominium development in the Near Southeast submarket of Washington, DC in recent history. Plans call for 266 condominium units over a four-level underground parking garage with approximately 210 parking spaces and 65 storage spaces. The condominium community is part of a master planned development that will include a 13-story office building adjacent to the project, which will be separately developed by Opus.
Canyon-Johnson Urban Fund, the development's major equity investor, is a joint venture between Canyon Capital Realty Advisors and Earvin "Magic" Johnson's Johnson Development Corporation. Based in Los Angeles, the Canyon-Johnson Urban Fund is the nation's largest real estate investment fund platform focused on urban revitalization throughout America.
"Our investment in Washington, DC is consistent with our approach to fund value-oriented opportunities in urban America," said Canyon-Johnson Managing Partner Bobby Turner. "The near southeast submarket of Washington has been overlooked for years, and it is exactly the type of densely-populated, ethnically diverse market in which our fund invests. We are confident that this investment will accelerate the redevelopment of this traditionally underserved area."
Canyon-Johnson's partner in the project is Faison, a full-service private real estate development and investment firm that, in addition to its investments in office, retail and other asset classes, has developed over 1,000 residential units, the vast majority of which are located within the Washington, DC area.
"We are proud to work with the Canyon-Johnson team on this venture to develop condominiums in this emerging submarket of Washington, DC," said Phil Norwood, President and CEO of Faison. "And we are very pleased that we were able to identify and acquire this property and be a part of the growth of this rapidly transitioning area. We hope that this is the first of several deals with Canyon-Johnson."
Canyon-Johnson partner Earvin "Magic" Johnson said, "Under-served urban areas like Southeast Washington DC are yielding solid returns and drawing the eye of investors and developers. If you provide a high quality choice, and "best in class" services, the community will support it. We take pride in developing what our communities need to stimulate employment and economic growth."
Located less than two miles from Capitol Hill, the area has become the focus of significant redevelopment efforts including the relocation of the U.S. Department of Transportation headquarters, expected to bring 5,500 new employees to the area; redevelopment of the Navy Yard, expected to bring 11,000 workers to the area; and the installation elaborate infrastructure improvements to support the new baseball stadium and revitalize the submarket. The development is located less than two blocks from the new Nationals stadium and within easy access to the Metro transit system.
"It is our first investment in the District and we have an eye on several other transit oriented developments. The Faison team is one of the strongest development teams in the industry and we are glad to have them as partners." said Quincy Allen, vice president and member of Canyon-Johnson's investment committee.
Don Deutsch, Managing Director of Faison's Washington DC office added, "We have tracked the Near Southeast submarket for some time. We are believers in the long term fundamentals of Washington DC and its prospects to maintain job growth in the coming years. We were attracted to this submarket because of its emerging employment base, access to the metro and the amenities that will be developed in the area over the next 3 - 5 years."
Demolition of the site will begin in the third quarter of 2006, and project completion is expected in the third quarter of 2008. The majority of units, designed to attract entry-level professionals, will range in price from the high $200,000's to the high $300,000's with an average unit size of 725 square feet. Residents of the full service building will have amenities including a public courtyard, game room and pool.
Citibank Community Development is providing a senior construction loan for the project. Priya Jayachandran, Market Director, added, "Citibank Community Development is delighted to partner with CJUF and Faison to make the 1st & L St, SE project possible. We are proud of the nearly $74 million we are lending to the project which reflects our commitment to revitalizing neighborhoods-- like the Near Southeast part of the District-- and to creating homeownership opportunities including the 266 new condominium units that will be created at 1st & L St, SE."
Canyon-Johnson and Faison will work with a team with extensive urban residential experience. The design and project architect for the project is Esocoff & Associates, designers of several condominium projects for Faison. The project will be marketed by McWilliams Ballard, one of the largest real estate sales companies in the Washington Metropolitan area.
About Canyon-Johnson Urban Fund
The Canyon-Johnson Urban Fund (CJUF) is a joint venture between Canyon Capital Realty Advisors and Earvin "Magic" Johnson, formed to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. The Fund's 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.
About Faison Enterprises, Inc.
Faison Enterprises, Inc. is a privately-held development company with a diversified product portfolio that includes retail, commercial and residential project development, management and acquisitions services. With more than 40 years in the business and holdings of approximately $1 billion, including $500 million of new projects under development, the Charlotte NC based company manages and develops properties throughout the South and Mid-Atlantic and maintains regional offices in Bethesda MD, Washington D.C., Charlotte NC, Charleston SC, Atlanta GA, Orlando and Delray Beach, FL.
# # #
Media Contact:
Steve Sugerman
310-689-7535
steve@sugermangroup.com
www.sugermangroup.com
Don Deutsch
202-481-1300
don.deutsch@faison.com
www.faison.com
