Magic Johnson's Canyon-Johnson Closes New $1 Billion Canyon-Johnson Urban Fund III
The Canyon-Johnson Urban Fund, a partnership of Canyon Capital Realty Advisors and Earvin “Magic” Johnson, today announced the closing of its $1 billion Canyon-Johnson Urban Fund III.
The Canyon-Johnson Urban Fund, a partnership of Canyon Capital Realty Advisors and Earvin “Magic” Johnson, today announced the closing of its $1 billion Canyon-Johnson Urban Fund III. The third fund, which eclipses the combined $900 million in equity of the two predecessor funds, will facilitate more than $4 billion in new development and urban revitalization in the top 40 U.S. metropolitan markets. The fund’s focus is to identify, enhance and capture value through the development, redevelopment, acquisition and repositioning of real estate in densely populated, ethnically diverse neighborhoods with strong market fundamentals for retail and housing.
Fund III received commitments from a broad range of public and private pension funds, endowments, foundations and investment companies from throughout the nation, most of which participated in CJUF I and II. In addition to meeting its financial bottom-line investment objectives, CJUF III will seek to provide and foster economic opportunities for underserved residents of the urban neighborhoods in which it invests and to enhance the environment by pursuing LEED certifications and supporting transit-oriented housing that helps to reduce traffic and accompanying emissions.
“The success of the Canyon-Johnson Urban Funds has proven that investing in ethnically diverse markets can not only generate strong financial returns, but also benefit local communities and facilitate a positive environmental impact,” said Bobby Turner, the fund’s Managing Partner. “The continued investment by our institutional capital partners and the sheer scope and size of the third fund and its resulting capacity for revitalization in urban neighborhoods speaks volumes about the continued opportunities in our nation’s cities.”
Since inception in 2001, the Canyon-Johnson Urban Funds have 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, Austin, Baltimore, Brooklyn, Chicago, Cleveland, Houston, Las Vegas, Los Angeles, Milwaukee, Nashville, San Diego and Washington, D.C.
In total, Canyon-Johnson has already facilitated $4 billion of development, making the funds the country’s preeminent “value-added” capital partner for urban revitalization. The size of CJUF III will help achieve the Canyon-Johnson vision to create an urban landscape that encompasses the residential, retail and entertainment amenities that are so abundant in suburban communities, providing confidence, economic prosperity and a safe and healthy place to live for urban residents.
Market fundamentals point to continued growth in ethnically diverse communities across America. Over the next 10 years, population growth will generate demand for 14.6 million units of housing, with minority populations projected to account for 70 percent of that demand. Moreover, urban retail represents an unmatched investment opportunity due not only to the gap between supply and demand of retail within inner cities, but also demand density.
“The potential for continued revitalization in ethnically diverse communities is nearly limitless,” Earvin “Magic” Johnson said. “At Canyon-Johnson, we always make sure to listen to what people in urban communities want, not tell them what they need. We want residents to embrace our projects by patronizing them and respecting them. Canyon-Johnson has shown that having a financial investment component and making a significant social impact do not have to be mutually exclusive.”
Already, CJUF I and II have created in excess of 11,000 construction jobs and 5,000 permanent jobs by placing a strong emphasis on community hiring. These investments have resulted in the construction or repositioning of more than 6,200 housing units, 2.5 million square feet of commercial space and more than 2 million square feet of community-serving retail. To date, CJUF I and II have facilitated in excess of $2 billion in environmentally responsible investments, including more than $420 million in LEED-certified projects. The funds have also built in excess of 4,000 units of transit-oriented workforce housing.
Canyon-Johnson prides itself on assembling a “dream team” of professionals with unrivaled experience. 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 and law enforcement, 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.
Johnson plays a key role in this collaboration, bringing to the table his network of corporate partnerships including those with Starbucks Coffee Company, Burger King and 24 Hour Fitness, as well as his invaluable reputation as an urban ambassador of great-will.
Like its predecessor funds, Canyon-Johnson Urban Fund III will look to partner with local communities and developers, providing them with the much-needed capital and development experience to facilitate urban revitalization. “Quality partnerships are absolutely critical to the success of Canyon-Johnson,” noted Turner. “We value our relationships with the local developers, mayors and governors who recognize the need for high-quality investment in our nation’s cities. We look forward to working in partnership to help meet the tremendous demand for quality housing and retail opportunities in ethnically diverse communities in America.”
About Canyon-Johnson
The Canyon-Johnson Urban Funds (CJUF) are a partnership between Canyon Capital Realty Advisors LLC and Magic Johnson Enterprises. Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Los Angeles, Calif., with nearly $20.0 billion of capital under management. Canyon’s real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints.
About Magic Johnson Enterprises
Magic Johnson Enterprises (MJE), formed in 1987, serves as a catalyst for community and economic empowerment by making available high-quality entertainment, products and services that answer the demands of ethnically diverse urban communities. Through investment, partnership and consultation, MJE has a portfolio of companies that strategically work together to reinforce the organization’s focus on serving emerging, multicultural communities. Some of these companies include Urban Coffee Opportunities, Canyon-Johnson Urban Fund, SodexoMAGIC, over 30 Burger King restaurants, a dozen 24 Hour Fitness Magic Sport centers, a T.G.I. Fridays restaurant, and a long-standing partnership with AMC Magic Johnson Theatres.
