Canyon Partners, Santander Bank Launch Multifamily Impact Fund
Canyon Multifamily Impact Fund IV plans to spend approximately $100 million on affordable housing properties in the Northeast.
Canyon Partners Real Estate LLC has partnered with Santander Bank to launch Canyon Multifamily Impact Fund IV, which will acquire and manage approximately $100 million of workforce housing apartment communities serving low- to moderate-income residents in the Northeast.
This is the firm’s fourth partnership with the Canyon Multifamily Impact platform, which has acquired more than $475 million of workforce housing, representing more than 4,000 unites and 3.4 million square feet, since inception.
Canyon is seeking potential investment opportunities on behalf of Santander throughout the Northeast markets, targeting properties with a minimum of 100 units.
The platform will make capital improvements at the properties and institute a variety of programs for residents including after-school tutoring, financial aid courses, employment assistance, health services, sports activities and partnerships with local agencies and community groups.
“At Santander, we’re committed to working with community organizations to invest in affordable housing that enhances the quality of life for its residents,” said Seth Goodall, Santander’s executive director of corporate social responsibility, in a prepared statement. “This partnership with Canyon Partners Real Estate is an example of how our Inclusive Communities plan, an $11 billion, five-year commitment to lending, community development and charitable giving, is making a meaningful difference in the communities where we live.”
Impact Funds History
Canyon Multifamily Impact Fund III was launched in January 2017 in partnership with CIT Bank N.A., and was positioned to acquire and manage up to $90 million in workforce housing communities throughout Southern California. In September 2017, CMIF III acquired the leasehold interest in Coronado Palms, a 169-unit apartment community in Anaheim, Calif. CIT’s Real Estate Finance business provided the approximately $25 million senior secured loan to fund the purchase.
More recently, CMIF III acquired the Fountain View Apartments, a 153-unit, two- and three-story multifamily community in Long Beach, Calif., in December. CIT’s Real Estate Finance business also provided a $26 million loan to fund the purchase and capital improvements. Last June, CMIF III acquired The Harvey, a 177-unit, midrise apartment community in Hollywood, Calif. CIT’s Real Estate business provided a $20.4 million senior loan to fund the purchase and capital improvements. The property was renamed The Derby Hollywood to reflect the historic Hollywood location.
The first Canyon Multifamily Impact Fund was established in 2013 between Canyon and Citi Community Capital and acquired its first community, The Fountains at Palmdale in September 2013. The 21-acre property featured 336 units with one-, two- and three-bedroom floorplans.