Case | HBS Case Collection | December 2005 (Revised September 2007)

Canyon Johnson Urban Fund

by Felix Oberholzer-Gee and Alexa Arena

Abstract

Basketball star Earvin "Magic" Johnson and K. Robert Turner, managing partner of Canyon Johnson Urban Fund (CJUF), raised $271.7 million for investments in urban real estate. The fund considered two projects, both located in Hollywood, CA. The first was located on Hollywood and Highland. Proposed by a reputable developer who wanted to restore Hollywood and Highland to its former glory, the development included a 640,000 square-foot retail complex, a hotel, and the Kodak Theatre, the future home of the Academy Awards. The second project was a mixed-use development, located on Sunset and Vine. This property had suffered a bad run of previous development attempts, and the community had been highly critical of past projects, feeling high rental prices would lock local residents and businesses out of the market. Hollywood and Highland or Sunset and Vine? Turner planned to make his decision soon. Details the economics of both projects.

Keywords: Investment; Projects; Business and Government Relations; Public Opinion; Urban Development; Real Estate Industry; Los Angeles;

Citation:

Oberholzer-Gee, Felix, and Alexa Arena. "Canyon Johnson Urban Fund." Harvard Business School Case 706-442, December 2005. (Revised September 2007.)