Robin Potts

“We’re very proud of that expansion of our platform,” said Robin Potts, who’s been with the firm for 14 years and oversees its real estate originations and acquisitions. “Obviously, transaction volume is sharply down across the country following COVID, but we have been able to source opportunities and have had a busy year.”

So far, the firm has committed $650 million of debt and equity capital around the country and the Los Angeles-based firm isn’t done yet, Potts said. The firm has several more deals in the works and has been targeting its efforts in the wake of the pandemic to secondary markets around the country. For example, it provided $25 million in equity to a 239-unit, multifamily development just outside Seattle in May.

Note acquisitions in general have become a greater focus of Canyon’s since the pandemic started, Potts said. “It’s a market opportunity that’s only resurfaced since March and really hasn’t been available for the last decade.

“The demographic growth toward lower cost and non-gateway cities was actually a trend pre-COVID,” she added, “but COVID has accelerated that trend pretty significantly.”

While Canyon Partners is targeting secondary cities around the country, it hasn’t forgotten about Los Angeles, where it already has a sizable portfolio. In July 2019, the firm provided $10.9 million of preferred equity to Griffin Living to finance the construction of the 86-unit, senior living facility near Westlake Village, Calif.

Potts said the firm has been able to manage through COVID “successfully” after getting through a “variety of unexpected issues that no one has ever encountered before.” For the next year, Potts said Canyon is going to be focused on continuing to boost its lending platform and targeting “value-add and opportunistic investments,” especially for multifamily assets.—N.R.