Press Releases
CANYON-JOHNSON CLOSES ON NEW $600 MILLION CANYON-JOHNSON URBAN FUND II
Successor to CJUF I continues tradition of urban development
LOS ANGELES (March 23, 2005)- On the heels of the success of the Canyon-Johnson Urban Fund I, the partnership of Canyon Capital Realty Advisors and Earvin "Magic" Johnson's Johnson Development Corporation announced the closing of the first $470 million of its newly launched $600 million Canyon-Johnson Urban Fund II. The commitments for an additional $130 million are expected to close by the end of April.
With the closing next month, the Canyon-Johnson Urban Funds will be positioned to facilitate more than $3 billion of urban development and revitalization. Like the first fund, Canyon-Johnson Urban Fund II will focus on identifying, enhancing and capturing value through the development, redevelopment, acquisition and repositioning of real estate in densely populated, ethnically diverse neighborhoods throughout the United States. In addition to meeting its investment objectives, the Fund will look to provide and foster economic opportunities for the underserved residents of the urban neighborhoods in which it invests.
"The success of Canyon-Johnson Urban Fund I and the overwhelming interest in Canyon-Johnson Urban Fund II confirms that institutional capital has come to recognize the opportunities of urban investing," said Bobby Turner, the Fund's Managing Partner. "We decided to cap the fund at $600 million despite receiving more than $1 billion in interest," Turner added. The fund received commitments from a broad range of public and private pension funds, endowments, foundations and investment companies from throughout the nation.
Led by Turner and Earvin "Magic" Johnson, Canyon-Johnson's investments have already facilitated $1.25 billion of development and the firm has quickly emerged as the country's preeminent "value-added" capital partner for urban revitalization. Since its formation, Urban Fund I has invested in transactions encompassing a diverse mix of property types including retail, residential, mixed-use, commercial and industrial in a diverse group of urban markets including Atlanta, Baltimore, Brooklyn, Chicago, Cleveland, Las Vegas, Los Angeles, Miami, Milwaukee, and San Diego.
"Canyon-Johnson has the dream team of professionals with unrivaled experience," noted Turner. The team's extensive track record as an owner and operator of urban real estate has allowed Canyon-Johnson to establish an exceptional understanding of the disciplines necessary to successfully develop and operate within urban communities. Moreover, the uniqueness of the Canyon-Johnson team adds value to every step of the investment process. With professionals from diverse disciplines including government, architecture, property management, engineering, construction, law, development, and accounting, the Canyon-Johnson team is equipped to create optimally tailored solutions and identify opportunities and strategies appropriate for current urban market conditions.
Earvin "Magic" Johnson plays an especially key role in this collaboration, bringing to the table his network of corporate partnerships with Loews Cineplex Entertainment (Magic Johnson Theaters), Starbucks Coffee Company, Burger King, 24-hour Fitness and Washington Mutual as well as his invaluable reputation as an urban ambassador of great-will. "With Magic Johnson's commitment to community outreach, our team is focused on making a positive impact within urban communities by developing projects which provide economic opportunity and enhance social well being," said Turner.
The Canyon-Johnson vision is to create an urban landscape that encompasses the residential, retail and entertainment amenities so abundant in suburban communities, providing both confidence and economic prosperity to urban residents. "To be successful in urban markets, you need to make sure the surrounding community is supportive of your project. You need to make sure that residents will embrace the development by patronizing it and respecting it," said Earvin "Magic" Johnson. "Canyon-Johnson has proven that by investing in the inner city, you can positively impact people's lives and make money in the process. That's a winning combination."
To this end, the original fund has created almost 9,000 construction jobs and 2,000 permanent jobs by placing a strong emphasis on community hiring. Investments from the first fund have resulted in the construction or repositioning of more than 2,200 housing units, 2.2 million square feet of commercial space and more than 1.7 million square feet of community-serving retail.
Like its predecessor fund, Canyon-Johnson Urban Fund II will look to partner with local communities and developers, providing them with the much needed capital and development experience to facilitate urban revitalization. The Fund will focus on the top 40 metropolitan markets in the United States.
Christopher J. Ailman, Chief Investment Officer for the California State Teachers' Retirement System (CalSTRS), said that his pension fund -- the third largest in the United States -- wholeheartedly endorses the investment philosophies of Canyon-Johnson. "It was critical to us that we select a manager that had all the necessary skills to gain access to and analyze transactions, work within each city's approval process and manage complicated mixed-use developments," he explained. "Canyon-Johnson has excelled in those areas, and has a proven track record of success on both economic and social fronts. We are ecstatic to lend our support to this exceptional fund, and we are confident that they will meet and exceed our Board's stated goal of investing in the underserved portions of California to improve communities while also increasing returns for our members."
Since its founding in 2001, Canyon-Johnson has made significant investments in urban areas throughout America. Those investments have included:
- Sunset + Vine (Hollywood, CA): In partnership with Santa Monica-based Bond Companies, Canyon-Johnson developed 300 loft-style apartments and 87,000 square feet of retail space, injecting new life into a previously underutilized area of Hollywood, California, and winning the Grand Award for Best Commercial Retail Project at the PCBC 2004 Gold Nugget Awards in the process.
- Midtown Center (Milwaukee, WI): In partnership with Boulder Venture, Canyon-Johnson developed over 550,000 square feet of community serving retail anchored by Wal-Mart, Lowes Home Improvements, Pick n Save Grocery and TJ Maxx. The project is located in the Capital Court area of Milwaukee, Wisconsin.
- Downtown Dadeland (Miami, FL): In partnership with Gulfside Development, Canyon-Johnson is developing 416 condominium units and 122,000 square feet of community serving retail in south Miami, Florida.
- State Place (Chicago, IL): In partnership with Mesirow Stein, Northern Realty and Lowenberg & Associates, Canyon-Johnson developed 243 residential condominium units and 61,500 square feet of community serving retail on the former site of the City of Chicago police headquarters in the south loop district of Chicago.
- Plaza Midtown (Atlanta, GA): In partnership with Daniel Realty Corporation and Selig Enterprises, Canyon-Johnson is developing 452 residential condominium units and 70,000 square feet of community serving retail anchored by a Publix grocery store in the mid-town district of Atlanta, Georgia.
- Transamerica Tower (Los Angeles, CA): Together with New Pacific Realty, Canyon-Johnson sparked a turnaround in the South Park area of downtown by acquiring two adjacent mid-rise office buildings, parking areas and vacant land in an effort that is revitalizing the 12-acre property and transforming it into a premier residential and office complex in the city's urban core.
About the Partners
The Canyon-Johnson Urban Funds (CJUF) are managed by Canyon-Johnson Realty Advisors LLC, a partnership between Canyon Capital Realty Advisors LLC and Johnson Development Corporation.
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Media Contact:
Steve Sugerman
310-689-7535
steve@sugermangroup.com
www.sugermangroup.com
