Basketball legend Magic Johnson, part of a joint venture in Little Havana, took a $5.8 million loss on a project that never took off, the South Florida Business Journal reported.
Johnson’s Los Angeles-based Canyon-Johnson Urban Fund partnered with Miami-based mFm Construction to purchase a 2.1-acre site at Northwest 8th Street and Southwest 1st Street in 2007 for $11.4 million, the Journal said.
After obtaining a construction loan, the venture announced plans to build 395 working-class housing units plus retail and office space.
The group recently sold the property to Eight and First LLC for $5.63 million, a 51-percent discount from the 2007 purchase price, not accounting for fees the venture paid to maintain the property for six years.
Canyon-Johnson owns the Intracoastal Mall in North Miami Beach and is developing a shopping center in Fontainebleau. Its partner in the Calle Ocho venture, mFm Construction, was hit with five foreclosure lawsuits during the recession and is no long active, according to state records. [South Florida Business Journal] –Emily Schmall