One Santa Fee UPDATE

News Provided by The Downtown Living Team

One Santa Fee UPDATE

Postby TedTrent » Wed May 30, 2012 5:35 pm

CANYON-­‐JOHNSON  URBAN  FUND  INVESTS  IN  
DOWNTOWN  LOS  ANGELES  MIXED-­‐USE  PROJECT    

Highly  anticipated  One  Santa  Fe  development  with  the  City  of  Los  Angeles  as  the  sponsoring  agency. 
 
LOS  ANGELES  (January  9,  2012)  –  Canyon-­‐Johnson  Urban  Fund  (CJUF)  has  provided  preferred  equity   capital  to  a  joint  venture  among  The  McGregor  Company,  Polis  Builders  Ltd.  and  Goldman  Sachs  Urban   Investment  Group  (UIG)  to  jumpstart  the  development  of  One  Santa  Fe,  a  $160  million  mixed-­‐use   project,  with  the  City  of  Los  Angeles  as  the  sponsoring  agency,  in  the  heart  of  Downtown  Los  Angeles’s   Arts  District.    The  financing  will  enable  the  One  Santa  Fe  development  team  to  begin  construction  and   site  improvements  this  month.  

The  fully  entitled  and  permitted  project,  situated  on  land  owned  by  the  Metropolitan  Transportation   Authority  (MTA),  spans  several  blocks  on  Santa  Fe  Avenue  between  First  and  Fourth  Streets.    When   complete,  One  Santa  Fe  will  include  438  apartments  and  78,620  square  feet  of  office  and  retail  space,   along  with  nearly  50,000  square  feet  of  public  outdoor  space.      

CJUF’s  preferred  equity  investment  closed  the  financing  gap  for  the  four-­‐acre  project.  The  residential   portion  is  being  financed  by  tax-­‐exempt  bonds  issued  by  the  California  Housing  Finance  Agency  and   guaranteed  by  the  U.S.  Department  of  Housing  and  Urban  Development,  a  loan  from  the  City  of  Los   Angeles  Housing  Department,  and  Low  Income  Housing  Tax  Credit  equity  provided  by  UIG.  The   commercial  component  is  being  financed  by  a  loan  from  the  City  of  Los  Angeles;  New  Markets  Tax  Credit   allocations  provided  by  Clearinghouse  CDFI,  Genesis  LA  Economic  Growth  Corporation  and  the  Los   Angeles  Development  Fund;  and  New  Markets  Tax  Credit  equity  provide  by  UIG.  

One  Santa  Fe  is  leased  under  a  78-­‐year  ground  lease  with  the  MTA,  which  is  currently  considering  a   potential  future  direct  connection  from  the  property  to  a  new  terminal  station  for  the  Red  Line  Subway.   It  is  anticipated  that  the  MTA  will  sublease  35,000  square  feet  of  the  project’s  commercial  space,  and   that  the  balance  of  the  space  will  be  leased  to  community-­‐serving  retail  tenants.  The  project  is  also   located  across  the  street  from  the  Southern  California  Institute  of  Architecture,  and  the  development   has  been  designed  in  part  to  offset  needs  for  student  housing  in  the  area.  

“One  Santa  Fe  is  truly  transformative  for  Los  Angeles.    It’s  time  to  move  this  valuable  development   forward,”  said  CJUF  Managing  Partner  Bobby  Turner.  “The  project  will  help  meet  the  substantial   demand  for  affordable  and  market-­‐rate  housing  and  create  a  new  focal  point  for  the  neighborhood  by   bringing  public  transportation  and  new  life  to  a  piece  of  land  that  has  sat  underutilized  for  too  long.”    

“Canyon-­‐Johnson  is  all  about  creating  opportunities  in  urban  America,”  said  CJUF  Partner  Earvin  “Magic”   Johnson.    “It’s  great  to  invest  in  our  home  base  of  Los  Angeles,  and  to  take  a  project  as  important  as  One   Santa  Fe  to  the  next  level,”  he  added.  
Designed  by  famed  Los  Angeles  architect  Michael  Maltzan,  the  six-­‐story  building  is  currently  planned  to   feature  an  outdoor  terrace  that  provides  views  of  downtown  and  the  river,  along  with  a  grocery  store,   additional  retail,  an  art  gallery,  a  multi-­‐use  theater  and  a  garden  on  the  ground  floor.  Twenty  percent  of   the  units  will  be  affordable  and  aimed  at  low-­‐income  renters.  The  owners  of  the  commercial  and   residential  components  are  each  Equal  Opportunity  Affirmative  Action  Employers.  

 “This  is  a  significant  economic  development  win  for  the  city,”  said  Los  Angeles  Mayor  Antonio   Villaraigosa.    “This  is  a  prime  example  of  our  ability  to  attract  investment,  create  jobs  and  enhance  parts   of  the  city  in  need  of  revitalization.”    
 “Canyon-­‐Johnson  is  pleased  to  invest  in  One  Santa  Fe  and  work  with  a  development  team  led  by  Bill   McGregor,  whose  leadership  and  perseverance  enabled  this  project  to  come  to  fruition,”  said  CJUF   Managing  Director  Quincy  Allen.  “The  project’s  complex  financing  and  our  work  with  the  City  of  Los   Angeles  and  the  MTA  are  a  testament  to  the  fact  that  public-­‐private  partnerships  play  a  strong  role  in   urban  development.  We  look  forward  to  making  this  project  a  reality.”  
 
“We  are  thrilled  to  close  this  transaction.  From  the  beginning,  we’ve  believed  One  Santa  Fe  will  help   invigorate  Downtown  Los  Angeles  and  jumpstart  additional  investment  in  the  up-­‐and-­‐coming  Arts   District,”  said  Bill  McGregor,  President  of  the  McGregor  Company.  “I  thank  our  many  partners  –  Canyon   Johnson  Urban  Fund,  the  City  of  Los  Angeles,  the  Metropolitan  Transportation  Authority,  Goldman   Sachs,  the  Department  of  Housing  and  Urban  Development  and  everyone  else  who  contributed  to   bringing  this  project  from  the  drawing  board  to  reality,”  he  added.  

“We  are  very  proud  to  be  involved  in  One  Santa  Fe  as  it  serves  as  a  model  for  mixed-­‐income  and  transit-­‐ oriented  development  in  emerging  urban  markets,”  said  Alicia  Glen,  Managing  Director  and  Head  of  the   Urban  Investment  Group  at  Goldman  Sachs.  “This  project  was  conceived  over  five  years  ago  and  has  at   last  become  a  reality  thanks  to  the  long-­‐standing  commitment  and  determination  of  a  strong  group  of   public  and  private  partners  who  were  dedicated  to  revitalizing  the  Arts  District  with  this  significant   mixed-­‐use  project.”    

“The  One  Santa  Fe  development  is  a  prime  example  of  a  partnership  that  supports  positive  economic   development  in  Los  Angeles,”  said  Los  Angeles  City  Councilmember  Jan  Perry,  the  representative  of  the   area.    “This  is  a  game-­‐changing  project  that  will  have  a  lasting  positive  impact  on  both  the  Arts  District   and  all  of  Downtown,”  she  said.  

Locally  based  KTGY  Group,  Inc.  is  the  executive  architect  for  the  project.    KTGY  has  already  completed   construction  drawings  and  the  general  contractor,  Bernards  Brothers  Inc.,  has  commenced   predevelopment  work  onsite.    The  project  is  anticipated  to  be  fully  constructed  by  December  2014.

About  Canyon-­‐Johnson  Urban  Fund  
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.  For  more  information,  visit   www.cjuf.com.  

About  The  McGregor  Company  
The  McGregor  Company  is  a  Southern  California  based  firm  specializing  in  the  development  and   property  management  of  complex  residential,  special-­‐use  and  commercial  real  estate  projects.    The   company  develops  and  manages  projects  for  its  own  account  and  in  concert  with  its  financial  partners.     Many  projects  of  The  McGregor  Company  are  architecturally  notable  including  structures  by  I.M.  Pei,   Richard  Meyer,  Ricardo  Legorreta  and  Barton  Myers.    One  Santa  Fe  by  Michael  Maltzan  will  now  be   among  these.  

About  Goldman  Sachs    
The  Goldman  Sachs  Group,  Inc.  is  a  leading  global  investment  banking,  securities  and  investment   management  firm  that  provides  a  wide  range  of  financial  services  to  a  substantial  and  diversified  client   base  that  includes  corporations,  financial  institutions,  governments  and  high-­‐net-­‐worth  individuals.   Founded  in  1869,  the  firm  is  headquartered  in  New  York  and  maintains  offices  in  all  major  financial   centers  around  the  world.    

Goldman  Sachs  established  the  Urban  Investment  Group  (UIG)  in  2001  to  deploy  the  firm's  capital  by   making  investments  and  loans  through  comprehensive  community  development  platforms  that  benefit   underserved  communities  in  the  United  States.  UIG  has  committed  more  than  $1.6  billion,  facilitating   the  creation  and  preservation  of  approximately  10,500  housing  units  –  75%  of  which  are  affordable  to   low,  moderate  and  middle-­‐income  families  –  as  well  as  over  1,000,000  square  feet  of  community  facility   space  and  approximately  1,200,000  square  feet  of  commercial  and  retail  space.  To  learn  more  about   UIG,  visit  www.gs.com/uig.  

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TedTrent
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