Canyon Partners Real Estate, the real estate direct investing arm of Canyon Partners, has acquired The Harvey, a 177-unit, midrise apartment community with 1,900 square feet of ground-floor retail space located in Hollywood, Calif. The transaction was executed through Canyon Multifamily Impact Fund III, a joint venture between Canyon and CIT Bank, N.A., 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. It is located directly on Santa Monica Boulevard.
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.
“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.
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. To date, CMIF has acquired more than $400 million of workforce housing, representing approximately 4,000 units and 3.3 million square feet.
In the past five years, Canyon has deployed more than $1 billion in 48 California investments through senior loans, mezzanine loans, preferred equity and common equity, with more than $700 million of investments in Southern California alone.
