AECOM Capital and Canyon Partners LLC has formed AECOM-Canyon Partners, a joint venture focusing on developing commercial real estate projects. AECOM-Canyon Partners has already committed over $65 million of equity capital across three investments, which include a hotel in Menlo Park, California.
LOS ANGELES, Feb. 19, 2019 /PRNewswire/ — AECOM Capital, the investment arm of global infrastructure firm AECOM, and Canyon Partners, LLC, a global alternative asset management firm with over $24 billion in assets under management, today announced the establishment of AECOM-Canyon Partners, a joint venture focused on developing large-scale, institutional quality commercial real estate projects.
The new 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, and condominiums. In addition to capital, the joint venture partnership is seeking to deliver best-in-class design, construction management, and engineering expertise as well as balance sheet support for its development partners.
“We are excited to expand our direct investing business through a partnership with Canyon, and we believe that this venture represents a truly unique combination of AECOM’s commercial real estate development expertise and Canyon’s 27 years of investment experience,” said Michael S. Burke, AECOM’s Chairman and Chief Executive Officer.
“There is significant demand for build-to-core assets from institutional buyers seeking yield and quality, while it is becoming increasingly challenging in the current environment for developers to capitalize and create the Class A, large scale assets these core buyers are seeking,” said Canyon’s Co-Founder, Co-Chairman, and Co-CEO Josh Friedman. “With a differentiated combination of construction management, design, engineering, development, and investment expertise across AECOM and Canyon, this new platform is well-suited to capitalize on that supply/demand imbalance.”
AECOM-Canyon Partners has already committed over $65 million of equity capital across three investments totaling approximately $730 million in assets, including a full service, 250-key hotel in Menlo Park, CA, a 525 unit multifamily project in the NoMa submarket of Washington, DC, and a large scale mixed-use project in the Culver City submarket of Los Angeles, CA.
About AECOM Capital
AECOM Capital is an investor and developer of real estate and other large-scale projects across North America and select international markets. Targeting high-quality, risk-adjusted investments, AECOM Capital leverages AECOM’s vast resources across all engineering, design, and construction services for deal flow, due diligence, execution, and project delivery. AECOM Capital has a total development value of over $4.5 billion across approximately 10 million square feet. As part of AECOM, a fully integrated global infrastructure firm, we connect knowledge and experience across a global network of experts to help clients solve their most complex challenges. A Fortune 500 firm, AECOM had revenue of approximately $20.2 billion during fiscal year 2018. See how we deliver what others can only imagine at www.aecomcapital.com.
About Canyon Partners, LLC
Founded in 1990, Canyon Partners is a leading alternative asset manager investing on behalf of institutional investors worldwide, with over $24 billion in assets under management. Canyon is headquartered in Los Angeles, with offices in Hong Kong, London, New York, Seoul, Shanghai, and Tokyo. For more information please visit: www.canyonpartners.com.