Canyon-Johnson Invests Preferred Equity to Recapitalize Two Regional Malls in Greater Seattle Area

  Canyon-Johnson Invests Preferred Equity to Recapitalize Two Regional Malls
  in Greater Seattle Area

Business Wire

LOS ANGELES -- March 6, 2013

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.

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.

About Canyon-Johnson

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.

Contact:

For Canyon-Johnson Urban Funds
Steve Sugerman, 310-974-6680
 
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