AECOM, Canyon Partners JV will spend $4B to develop properties nationwide

The partnership will build residential, office and mixed-use, then sell to institutional investors

Feb.February 25, 2019 10:00 AM
AECOM CEO Michael Burke and Canyon Partners’ co-CEOs Joshua Friedman and Mitchell Julis 

AECOM Capital and Canyon Partners will invest $4 billion into a joint venture for developing “large-scale, institutional quality” commercial real estate projects across the country.

AECOM Capital — the investment arm of AECOM — and asset management firm Canyon will focus on developing core assets in the top 25 U.S. markets, according to a joint release. That includes in the Los Angeles area, where both companies are headquartered.

The partnership will develop on all property types, including residential, office and mixed-use complexes, and sell to institutional buyers.

The joint venture has so far invested $65 million into three projects. Those include a mixed-use development in L.A.’s Culver City, called Ivy Station; a 250-key hotel in Silicon Valley’s Menlo Park; and a 525-unit project in Washington, D.C.

Both firms are heavily active in Los Angeles. AECOM is developing a 51-story tower in Downtown’s South Park neighborhood. The project was one of the largest proposed last year. It’s also managing construction on Related Companies’ and CORE’s $1 billion Grand Avenue development, executing a Frank Gehry design that includes two large towers.

Canyon manages a number of assets around L.A. and has provided financing on new construction as well.

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