LOS ANGELES--()--Canyon-Johnson Urban Funds (Canyon-Johnson) has invested preferred equity to recapitalize two regional malls in the Greater Seattle Area. The shopping centers include The Commons, a 770,000 square-foot center in Federal Way, and the 800,000 square-foot Everett Mall, in Everett, Washington.
“With Canyon-Johnson’s involvement, we have the resources to bring new shopping, dining and entertainment options to both properties.”
Canyon-Johnson’s infusion of preferred equity is enabling the current owners, affiliates of the Steadfast Companies, to complete a full repositioning of both properties. Steadfast has already begun relocating tenants, expanding and remodeling space within the centers, and signing leases with new national and regional retailers who will move into the regional malls this year. Leasing efforts are expected to bring new tenancy of over 100,000 square feet at Everett Mall and over 65,000 square feet at The Commons.
This is the second time Canyon-Johnson has worked with Steadfast, a real estate investment and management company based in Irvine, California. The two firms first teamed in 2010 to remodel and reposition the Brea Plaza Shopping Center in Southern California.
“These investments underscore our continued interest in the Pacific Northwest market and our commitment to supporting high-quality projects in urban areas across the United States,” said Canyon-Johnson CEO and Managing Partner Bobby Turner. “We are confident that the infusion of capital at this critical time for both regional malls will help them achieve their potential. These are exceptional retail assets.”
“Canyon-Johnson has a great track record of investing in urban retail centers, and we look forward to delivering results that will achieve a complete repositioning of these two properties that have enormous upside potential,” said Steadfast Chairman and CEO Rod Emery. “With Canyon-Johnson’s involvement, we have the resources to bring new shopping, dining and entertainment options to both properties.”
Everett Mall is currently anchored by Regal Theater, Sears, Macy’s, LA Fitness and Old Navy and The Commons is home to Century Theaters, Target, Macy’s, Sears and an extensive restaurant row. New tenants that have already committed to the mall repositionings include Burlington, ULTA Cosmetics, Party City, Buffalo Wild Wings, and Olive Garden.
Everett Mall has immediate access off of Interstate 5 and proximity to local employment centers. The city of Everett is home to the Boeing Company with 39,000 employees and to the Everett Naval Station with 6,310 affiliated personnel. The Commons shopping center is just 15 miles south of downtown Seattle, adjacent to the Celebration Park sports complex as well as Weyerhaeuser, one of the world’s largest pulp and paper companies.
A series of joint ventures between Canyon Capital Realty Advisors LLC (CCRA) and Earvin “Magic” Johnson, the Canyon-Johnson Urban Funds (Canyon-Johnson) were formed to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically-diverse urban communities. Over the past decade, Canyon-Johnson has been responsible for over $4 billion of urban revitalization encompassing a diverse mix of property types including retail, office, residential, mixed-use, hospitality, commercial and industrial in a wide array of urban markets. 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. CCRA is the real estate direct investing arm of Canyon Partners, LLC. Canyon Partners and its affiliates, including Canyon Capital Advisors, CCRA and ICE Canyon, are investment management firms and registered investment advisors headquartered in Los Angeles, California. For more information, visit www.cjuf.com.
About Steadfast Companies
Since its formation in 1994, Steadfast Companies and its affiliates have acquired, developed or redeveloped more than $2.6 billion of residential, commercial, and resort properties throughout the United States and Mexico. Today, it is an integrated real estate investment management company that owns and operates four malls across California and Washington and three resorts in Mexico, and owns and/or manages over 16,000 apartment units across the country. The company’s real estate professionals oversee all stages of a property’s lifecycle -- acquisitions, construction management, property management, asset management and dispositions. For more information, visit www.steadfastcompanies.com.