Canyon Capital Provides New York Investor Nearly $7 Million to Acquire West Chelsea Cabaret and Development Rights

NEW YORK--(BUSINESS WIRE)--Aug. 3, 2005--Canyon Capital Realty Advisors has helped finance the acquisition of the El Flamingo Theater, steps from Chelsea Piers and the Hudson Riverfront in the up-and-coming West Chelsea district of Manhattan.

Most recently the venue for "The Donkey Show," a long-running disco production of Shakespeare's "A Midsummer Night's Dream," the cabaret theater located at 547-549 West 21st Street, was purchased with an eye toward redeveloping the site and an adjacent property for residential and commercial uses. New zoning regulations adopted in June by the New York City Council will allow the transfer of development rights within West Chelsea, to foster new, more intensive residential and commercial development in the underutilized neighborhood.

With a $6.87 million bridge loan from Canyon Capital Realty Advisors, 551 West Chelsea Partners LLC of New York acquired 5,000 sq. ft. of land and nearly 25,000 sq. ft. of residential and commercial rights. The new owner of the El Flamingo site is Alf Naman, a veteran Manhattan real estate investor, owner, developer and broker. This is Canyon and Naman's third real estate investment together.

"My years developing properties have taught me that good partnerships make for good deals, and with Canyon Capital, we have a great relationship--they're experts at complicated transactions, and they close deals quickly," Naman said.

Canyon Capital Managing Partner Bobby Turner said, "Alf has an ambitious, smart vision for the El Flamingo site that will add tremendous value to the neighborhood."

In January 2005, assisted by a $5.75 million bridge loan from Canyon, Naman acquired another West Chelsea property, with development rights, at West 24th Street and Tenth Avenue. It is located beneath and adjacent to the High Line, an elevated railroad track. There is strong neighborhood support for converting the High Line into a public park.

"Alf Naman has his finger on the quickening pulse of West Chelsea and is seizing a terrific opportunity to be a major player in the area's revitalization," said Jonathan Roth, Principal of Canyon Capital Realty Advisors.

Canyon Capital Realty Advisors and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Beverly Hills, Calif., with more than $9 billion of capital under management. Canyon's real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints.

Canyon has built its reputation on creative underwriting and structuring, reliable commitments, overall professionalism and timely closings. Canyon's real estate funds include the Canyon Value Mortgage Fund and the Canyon-Johnson Urban Funds, a joint venture with Earvin "Magic" Johnson focused on the development of retail and residential properties in densely populated, ethnically diverse communities.