LOS ANGELES, CA - Canyon-Johnson Urban Fund (CJUF) has made a $25.7 million equity investment in a joint venture with an affiliate of GLJ Partners for the acquisition and development of a fully entitled 15.4 acre redevelopment site for The Paseos, an infill transit-oriented apartment development in Montclair, California.
The Paseos, which is slated for ground-breaking in the summer of 2012, will consist of 18 low-rise buildings with 385 units, ranging in size from studios to three bedrooms. The property enjoys several positive attributes, including a strong in-fill location, robust market demand for quality rental housing, and support from the City of Montclair which issued building permits for the project last week.
The project is an integral component of the North Montclair Downtown Specific Plan, a mixed-use transit-oriented downtown district between the Montclair Transcenter and the Montclair Plaza regional shopping center. Montclair Transcenter, which includes connections for regional bus and Metrolink rail service, and the 1.2 million square foot Nordstrom-anchored Montclair Plaza regional mall are both one block from the property. The nationally-ranked Claremont Colleges are located one mile to the west.
“The Paseos exemplifies the investment mandate of Canyon-Johnson,” said CJUF Managing Partner and CEO Bobby Turner. “We are bringing high quality housing to a diverse, densely populated area, and are providing other public benefits for local residents. This is the kind of triple bottom-line investing that is a hallmark of Canyon-Johnson,” he said.
“We appreciate the support of the City of Montclair to move this important project forward,” said CJUF partner Earvin “Magic” Johnson. “Building The Paseos will provide Class A workforce housing and spur other local investment right here in our home base of Southern California,” he added.
In all, the project will encompass more than 385,000 square feet, 722 parking spaces, as well as extensive common area amenities including two outdoor swimming pools, a clubhouse and public park. Outdoor barbeques and fireplaces will be located throughout the property.
“We have a strong partner in GLJ Partners, and are confident this will become one of the premier transit-oriented communities in the region,” according to Quincy Allen, CJUF Managing Director. “Demand for quality housing in this area far outweighs current supply,” he said.
GLJ Partners’ leadership team brings decades of experience building tens of thousands of quality residential units throughout Southern California. The firm’s projects have received many design awards, and accolades from local residents and neighbors.
“We look forward to collaborating with the Canyon-Johnson team to create a model project for the area,” said Leonard Wood, Chairman of GLJ. “The Paseos provides a unique opportunity for our firms to bring their collective experiences and skills to the table for this important project in Montclair.”
DesignARC, a multi-faceted architectural firm, designed The Paseos. “This is a terrific site, and a unique plan with distinctive Santa Barbara-style architecture,” said Garth Erdossy, President of GLJ. “The Paseos will demonstrate our commitment to green building, and will also be a great asset to the community.”
The Canyon-Johnson Urban Fund is one of the country’s largest private real estate funds focused on the development of urban properties in underserved neighborhoods. Canyon Capital Realty Advisors and Earvin “Magic” Johnson’s Magic Johnson Enterprises joined forces to raise a series of funds to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. Fundamental to Canyon-Johnson’s investment thesis is its commitment to a “triple bottom line” philosophy of achieving superior financial results, fostering opportunities within urban communities, and embracing environmental responsibility. With nearly $2 billion in committed equity capital, the funds are positioned to facilitate more than $8 billion in development and revitalization in major U.S. metropolitan areas. Canyon Capital Realty Advisors is the real estate direct investing arm of Canyon Partners. Canyon and its affiliates are investment management firms and registered investment advisors headquartered in Los Angeles, California, with approximately $18.5 billion in assets under management.