CHICAGO-A joint venture of Los Angeles-based Canyon-Johnson Urban Funds and locally based McCaffery Interests has purchased the troubled retail-residential Roosevelt Collection from Centrum Properties. Reports put the price paid at between $160 million to $175 million, much less than roughly $300 million the complex cost to build.
The property consists of 342 apartments, which are more than 90% occupied, successful since conversion from condos by Centrum in 2009. However, the 400,000 square feet of retail is mostly empty. The only tenant is a 16-screen Kerasotes ShowPlace ICON Theater. Centrum made the sale at the agreement of creditors that included Bank of America.
The venture plans to remove the center median along the property, which includes some retail properties, to install a plaza, water features, children’s play areas and wider sidewalks. The 12-acre property also includes a parking garage, vacant land for a public park and rights to develop more multifamily units.
Canyon-Johnson is a venture in itself between Canyon Capital Realty Advisors and Magic Johnson Enterprises, with partner Earvin Johnson of NBA fame. He said in a statement that the Canyon-Johnson venture is focused on creating opportunities in urban America. “It’s great to invest in Chicago, and to help a project as important as the Roosevelt Collection to reach the next level,” Johnson said in the statement.
Both Canyon Managing Director Rich Holly and Dan McCaffery, chairman and CEO of his firm, agree that the venture will be able to secure a mix of clothing, home furnishings and electronics retailers, as well as enhanced restaurant opportunities. “”We see so much great potential I the burgeoning South Loop neighborhood,” McCaffery said in the statement.
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