The Canyon Multifamily Impact Fund, a real estate fund focused on multifamily workforce housing in underserved communities, has acquired its first property, The Fountains at Palmdale.
The acquisition is the first within the Canyon Multifamily Impact Fund, a joint venture between Canyon Capital Realty Advisors and Citi Community Capital that addresses the need for higher quality workforce housing in underserved communities across the US.
The fund’s leadership team is currently identifying and evaluating potential investment opportunities in urban areas throughout California, Texas and Illinois. Individual investments will range in size from USD20m to USD90m for both individual properties and multi-site portfolios.
Built in 1986, the Fountains at Palmdale is situated on 21 acres with 336 units ranging from one to three bedrooms, at an average size of 874 square feet. The apartment complex is more than 80 per cent leased.
The Canyon Multifamily Impact Fund will launch a multi-million-dollar renovation programme that calls for interior unit improvements, upgrades to common area amenities – including the fitness centre, swimming pools, athletic courts and the addition of a playground – as well as new roofs and pavement. The plan will also result in the creation of a multipurpose community room for new resident services such as children’s enrichment programmes, health and wellness activities, and educational seminars. Integral to the physical and operational changes will be the adoption of measures that enhance resource conservation and improve the efficiency of water and power usage onsite, including the installation of drought-tolerant landscaping.
“We are thrilled to announce our first acquisition within the Canyon Multifamily Impact Fund, and to take on an active ownership role that will enable us to make a long-term, positive impact on a formerly underserved rental community in Palmdale,” says Bobby Turner, chairman and chief executive of Canyon Capital Realty Advisors. “The Multifamily Impact Fund is a perfect extension of our ‘triple bottom line approach’ of investing at Canyon that calls for achieving financial returns while advancing community development and embracing environmental responsibility.”
“We are off to an early start addressing the physical needs of the property and will soon roll out security, healthcare and education resources and programs for tenants at The Fountains at Palmdale,” says Dan Millman, principal at Canyon Capital Realty Advisors. “We are hopeful that these significant changes will help encourage pride of rentership and support a strong sense of community.”
“Citi Community Capital has long been a leader in the affordable housing investment community and the Palmdale project is an exciting step for Citi’s partnership with Canyon,” says Andrew Ditton, co-head of Citi Community Capital. “As the Fund continues to evolve, we believe it will play a pivotal role in helping to make a meaningful positive impact on underserved communities throughout the region.”