Magic Johnson's Private Equity Fund to Investing $50 Million in Austin Project

Magic Johnson's Canyon-Johnson Urban Fund is partnering with Austin-based Stratus Properties to provide the equity for Block 21, a $250 million mixed-use development in downtown Austin.

The project includes a 250-room W Hotel and 200 residential condominiums, a new home for the world-renowned Austin City Limits television studio, as well as a 2,200 seat live music venue, the Austin Children's Museum Dell Discovery Center, retail space, restaurants and an open-air public plaza.

"Austin is a growing, dynamic and entertaining city," said Earvin "Magic" Johnson. "We are committed to creating opportunities for the people in Austin, and making sure that Block 21 reaches its fullest potential."

The planned 35-story structure features the W Hotel on the lower floors and 200 residential condominiums on the upper floors. The first four floors will contain lobby areas for the hotel and residences, retail space with street frontage, a spa, swimming pool and pool terrace. Condominium owners will enjoy unprecedented access to five-star W Hotel amenities such as concierge services, valet parking, room and housekeeping services, and in-home spa services.

Construction of the project is scheduled to commence in September 2007, with pre-sales for the condominiums beginning in June 2007. The transaction is subject to the execution of definitive agreements.

Canyon-Johnson is a joint venture between the Los Angeles-based Canyon Capital Realty Advisors and basketball-legend-turned-urban-entrepreneur Earvin "Magic" Johnson, with almost $1 billion of committed equity to invest in the revitalization of ethnically-diverse, urban communities across the country.