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
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.