A joint venture between between AECOM Capital, the investment adviser of global infrastructure firm AECOM, and Canyon Partners, LLC, a global alternative asset management firm with over $25 billion in assets under management, announced the final close of its fund at its hard cap USD500 million in total commitments.
“The overwhelmingly positive response we received in the market underscores the strength of our partnership and the value we can bring to large-scale real estate development,” said Michael S. Burke, AECOM’s chairman and chief executive officer.
“We see substantial demand for core assets from institutional capital sources, but higher barriers to developing large scale projects. This partnership is designed to create high quality assets in major markets across the country that offer buyers the stable income they are seeking in today’s low yielding world,” said Josh Friedman, Canyon’s Co-Founder, Co-Chairman, and Co-CEO.
The platform intends to provide joint venture equity across over $4 billion of assets with high quality development partners, primarily targeting “build-to-core” investments in the top 25 U.S. markets across all property types, including multifamily, mixed-use, office, hospitality, industrial, and student housing.
In addition to capital, the joint venture partnership is seeking to deliver best-in-class design, construction management, and engineering expertise as well as credit support for its development partners.
Notable investments to-date include Ivy Station, a 519k square foot mixed-use development in Culver City where HBO has pre-leased all 240k square feet of office space; Union Place, a 525-unit luxury multifamily project in Washington, D.C. that is in the process of leasing; and Hotel Nia, a 250 key hotel adjacent to Facebook’s headquarters in Menlo Park, CA.