LOS ANGELES, CA (June 4, 2018) – Canyon Partners Real Estate LLC® (“Canyon”) announced the acquisition of The Harvey, a 177-unit, midrise apartment community with 1,900 square feet of ground floor retail space located in Hollywood, California. The transaction was executed through Canyon Multifamily Impact Fund III LLC (“CMIF III”), a joint venture between Canyon and CIT Bank, N.A. (“CIT”), with CIT’s Real Estate Finance business also providing a $20.4 million senior loan to fund the acquisition and capital improvements. The Harvey is the second acquisition to date by CMIF III.
As part of the acquisition, the property will be renamed The Derby Hollywood to reflect its historically rich Hollywood location, the neighborhood’s history rooted in film and entertainment and the celebrities depicted in the building’s mural.
CMIF III is strategically positioned to target acquisition opportunities in Southern California and promotes the implementation of resident programs through a variety of education, healthcare and community initiatives designed to benefit both residents and the communities in which they live and work. This is the third fund within Canyon’s workforce housing platform dedicated to advancing community development and embracing environmental responsibility. CMIF III is also directly in line with CIT’s pledge to invest in the betterment of the communities in which it serves.
“Hollywood is in the midst of a development boom and as housing prices in Southern California continue to rise, there is undeniable need for affordable workforce housing, particularly located in close proximity to transportation, employment, education and healthcare,” said Mike Pedone, Managing Director of CIT. “We are proud of our commitment, through CMIF III and Canyon, to help meet this need with our planned improvements to The Derby Hollywood.”
The Derby Hollywood is located directly on Santa Monica Boulevard, in close proximity to some of Los Angeles’ most notable and thriving neighborhoods including West Hollywood, Silver Lake, Koreatown and Downtown Los Angeles (DTLA), and provides its residents convenient access to desirable retail and lifestyle amenities within the Hollywood submarket. In addition, there are more than 650,000 jobs within a five- mile radius with substantial employers including Netflix, Paramount Pictures, Kaiser Permanente, Children’s Hospital Los Angeles, Cedar-Sinai Medical Center and Los Angeles City College. FPI Management, a California-based management company with strong experience in this market and a history working with CMIF and Canyon, will serve as The Derby Hollywood’s property manager.
CMIF III’s capital plans include enhancements to the property such as creating outdoor community space, re-envisioning the ground floor retail and developing a variety of resident impact programs. This recent acquisition of The Derby Hollywood builds upon the success of Canyon’s existing Multifamily Impact Funds which have improved multifamily properties by making long-term, material, positive impacts in targeted communities across the United States. To date, CMIF has acquired over $400 million of workforce housing, representing approximately 4,000 units and 3.3 million square feet.
Though Canyon’s practice has a national footprint, they have a broad range of experience investing in California. In the past five years, Canyon has deployed over $1 billion in 48 California investments through senior loans, mezzanine loans, preferred equity and common equity, with over $700 million of investments in Southern California alone.
About Canyon Partners Real Estate LLC
Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC. Canyon focuses on providing debt and equity capital for commercial real estate in primary and secondary markets across the U.S., primarily to facilitate asset acquisition, value-add repositioning, development or recapitalization. Since inception, Canyon has invested over $6.7 billion of capital in over 265 commercial real estate and mortgage transactions with a total capitalization of approximately $18 billion through its distinct real estate investment platforms.
Founded in 1990, Canyon Partners, LLC is an investment management firm headquartered in Los Angeles which, together with its affiliates, manages approximately $24 billion of assets. For more information visit: www.canyonpartners.com.
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with approximately $50 billion in assets as of March 31, 2018. Its principal bank subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has approximately $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. For more information, visit www.cit.com.
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