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WASHINGTON, DC-The Canyon-Johnson Urban Fund, a Los Angeles-based joint venture between Canyon Capital Realty Advisors and Magic Johnson, is making its first-ever investment in the Washington, DC market. The company is partnering with Charlotte, NC-based Faison to develop a condominium project next to the Navy Yard Metro station in Southeast.
Plans call for the development of 266-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 next to the project, which will be separately developed by Opus.
Philip W. Norwood, president and CEO of Faison tells GlobeSt.com this project, located at First & L Street SE, is valued at about $100 million. Bobby Turner, managing partner of Canyon, would not provide the dollar amount the firm would be investing but he did tell GlobeSt.com that Canyon "is the "majority capital provider." Citibank Community Development is providing a senior construction loan of $74 million for the project.
Canyon-Johnson Urban Fund is the largest real estate investment fund platform focused on urban revitalization. While this is its first project in Washington, DC, it is active in Baltimore and Virginia Beach. Turner says this project is well suited to the fund's mandate. "We look for projects located in big density areas, where there is a diversity of population and where there is a mismatch between demand and supply of affordable housing."
Turner says the fund is looking at other opportunities in the Washington area, although nothing specific is in the pipeline. "We will continue to explore the market and hope to announce a follow-up transaction within the next six months."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
