Earvin “Magic” Johnson and Canyon-Johnson Urban Fund Make First Nashville Investment

Nashville, Tenn., October 11, 2007 – Todd Mansfield, Chairman and CEO of Charlotte, NC-based Crosland, today announced that Canyon-Johnson Urban Fund, the nation’s largest real estate investment fund focused on urban revitalization in America, has invested with Crosland in Terrazzo, a $65 million mixed-use development under construction in The Gulch, an arts redevelopment district in downtown Nashville. It is Canyon-Johnson’s first participation with Crosland and its first investment in the Nashville market.

Headquartered in Los Angeles, Canyon-Johnson is a joint venture between Canyon Capital Realty Advisors and basketball-legend-turned-business tycoon Earvin “Magic” Johnson, CEO of Magic Johnson Enterprises. Johnson and the fund’s Managing Partner Bobby Turner were in Nashville today to mark the firm’s foray into Nashville’s urban development scene.

Crosland and Canyon-Johnson principals and Nashville Mayor Karl Dean made the announcement at a midday gathering of city and business leaders in front of the Terrazzo building site.

Construction began in March on the 14-story glass and limestone Terrazzo building, which is the first LEED™ pre-certified “green” residential high rise in the Southeast. Terrazzo’s first four floors contain retail and office space, topped by 10 floors with 109 spacious high-end condominiums. The structure is now rising above the street level; four floors of underground parking and the first floor of retail structure are in place. Units range in price from the $290,000s to $1.6 million, and move-ins will begin in the fall of 2008.

The Mayor congratulated Crosland and Canyon-Johnson not only on their investment in Terrazzo, but also on the companies’ investment in the area’s under-served children with their generous $10,000 donation to The Art Trunk program at the neighboring Frist Center for the Visual Arts in The Gulch. The Art Trunk program brings the arts to disadvantaged children within their own schools and community centers, and brings children to the arts at The Frist.

Johnson identified Nashville as the kind of city, and The Gulch as the kind of urban redevelopment neighborhood, that attracts his firm’s interest and investments.

“I am excited about investing in Nashville, especially in a mixed-use project that will bring quality residential and retail uses to The Gulch, which is quickly becoming the place to be in this city. Canyon-Johnson believes that investing in urban America is great business, and Terrazzo absolutely meets our objectives to revitalize urban areas, create jobs and stimulate development in key communities.”

Turner said the fund’s strategy is to partner with local developers, and take significant financial positions in projects which are poised for or already experiencing revitalization. “We have long felt too many real estate developers and investors were ignoring urban America despite enormous opportunities. We continue to find those opportunities and join with forward-thinking developers, like Crosland, who are playing a leadership role in revitalizing urban centers, including The Gulch,” he said.

“We are thrilled to have a partner of the quality and commitment of Canyon-Johnson,” said Ned Long, chief financial officer for Crosland. “They embrace the vision we’ve outlined for Terrazzo and the overall renaissance of The Gulch.”

More information on Terrazzo can be found at www.terrazzonashville.com.

About Canyon-Johnson Urban Funds

The Canyon-Johnson Urban Funds (CJUF) are a joint venture between the Los Angeles-based Canyon Capital Realty Advisors and basketball-legend-turned-business tycoon, Earvin “Magic” Johnson, CEO of Magic Johnson Enterprises. The funds were formed to identify, enhance and capture value through the development and redevelopment of real estate in densely populated, ethnically diverse urban communities. CJUF’s objectives are to seek current income and capital appreciation and to provide for and foster economic opportunities for the residents of the urban neighborhoods in which it invests. With nearly $1 billion in committed equity capital, CJUF is positioned to facilitate more than $4 billion in development and revitalization in major U.S. metropolitan areas. Learn more at www.cjuf.com.