New Everett Mall investors include Magic Johnson

Everett Mall seems to be back on steadier financial footing after receiving an investment from a California firm with ties to former NBA great Magic Johnson.

Canyon-Johnson Urban Funds has agreed to help recapitalize Everett Mall and The Commons shopping center in Federal Way, the company said Wednesday. The amount of money being invested was not disclosed. Both malls are owned in part by Steadfast Companies, which defaulted on a $98 million Everett Mall loan last March. Irvine, Calif.-based Steadfast owns two-thirds of Everett Mall.

“We are confident that the infusion of capital at this critical time for both regional malls will help them achieve their potential,” Bobby Turner, Canyon-Johnson CEO, said in a statement. “These are exceptional retail assets.”

Canyon-Johnson is a joint venture between Canyon Capital Realty Advisors and Earvin “Magic” Johnson, former Los Angeles Lakers basketball star. The private equity firm has invested $4 billion in urban revitalization projects over the past decade.

Facing foreclosure on Everett Mall last summer, Steadfast said it was devising a long-term redevelopment plan for the 800,000 square-foot shopping center, though it declined to detail plans for the mall.

In 2004, Steadfast paid $50 million to buy Everett Mall after the mall’s previous owner, Titanic Associates, defaulted on a loan in 2000. Steadfast quickly pumped more than $30 million into renovation and expansion, overseeing the addition of Regal Cinemas Stadium 16 theaters and attracting Best Buy and TJ Maxx to the outer mall’s buildings.

Last summer, Lisa Whitney, Steadfast vice president, acknowledged the mall had not been “immune to the proliferation of retailer downsizing, bankruptcies and the subsequent vacancies that have occurred industry wide” since the 2008 economic downturn.

Everett Mall has struggled to keep one of its large anchor storefronts filled. Late last year, the mall began construction to accommodate Burlington Coat Factory in the spot previously occupied by Steve &Barry’s and, before that, by Mervyn’s. Both retailers closed due to bankruptcy. Burlington Coat Factory will open this fall.

The renovation for Burlington Coat Factory was made possible by the investment from Canyon-Johnson, a spokeswoman for the investment firm wrote in an email Wednesday. However, the agreement between the two was not finalized until recently. Party City and ULTA Cosmetics also are opening retail stores in Everett Mall as part of the Canyon-Johnson project.

“Canyon-Johnson has a great track record of investing in urban retail centers, and we look forward to delivering results that will achieve a complete repositioning of these two properties that have enormous upside potential,” Steadfast Chairman and CEO Rod Emery said in a statement.

This is the second time Canyon-Johnson has worked with Steadfast. The two firms first teamed in 2010 to remodel and reposition the Brea Plaza Shopping Center in southern California.

“With Canyon-Johnson’s involvement, we have the resources to bring new shopping, dining and entertainment options to both properties” Steadfast’s Emery said in a statement.

Steadfast had not returned requests for additional information.

Michelle Dunlop: 425-339-3454; mdunlop@heraldnet.com.

More in Business

Newest must-try eatery: 85°C Bakery Cafe in Lynnwood

The popular bakery, part of a Taiwan-based chain, is already drawing out-the-door crowds.

Trudeau: Canada could stop dealing with Boeing over dispute

Boeing had petitioned the U.S. to investigate government subsidies of Bombardier’s CSeries aircraft.

Toys ‘R’ Us files for bankruptcy but keeps stores open

Retailers of all kinds are struggling. Toys ‘R’ Us is among at least 18 other bankruptcies this year.

Marysville-Arlington fiber-optic link planned by Comcast

The high-speed internet line, to be ready next year, is seen as a boost for business development.

‘Cheese that was grass 24 hours ago’ wins a farm accolades

Ferndale Farmstead specializes in authentic Italian cheeses — made with with American milk.

Snohomish County Business Licenses

PLEASE NOTE: Business license information is obtained monthly from the Washington Secretary… Continue reading

Coastal Community adds business relationship manager

Coastal Community Bank has hired Corbin Resseguie as a business relationship manager… Continue reading

Operation School Bell celebrates 52 years of service

On Sept. 20, Operation School Bell celebrates 52 years of service. Operated… Continue reading

Aerospace supplier MTorres consolidates into Everett site

Aerospace supplier MTorres has relocated into a 60,000 square-foot building in southwest… Continue reading

Most Read