Palmdale, Calif.—Canyon Capital Realty Advisors and Citi Community Capital announced that they have acquired their first community, The Fountains at Palmdale, for its joint-venture fund, the Canyon Multifamily Impact Fund.
The community, located in the High-Desert city of Palmdale, Calif., about 60 miles north of Los Angeles, features 336 units, a 21-acre spread, and offers one-, two- and three-bedroom floor plans with an average of about 874 square feet. It is currently 80 percent leased.
“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 CEO of Canyon Capital Realty Advisors.
The Canyon Multifamily Impact fund was created in May 2013 and is intended to address the need for “higher quality workforce housing in underserved communities across the United States,” according to a press release issued by the companies.
The purchase marks the start of the fund’s efforts to acquire communities that will then undergo aggressive renovations to the individual units and common amenities, such as swimming pools, fitness centers, sports courts and playgrounds. The fund’s leadership aims to tackle resource-based challenges by installing water-saving, drought-tolerant landscaping, as well as making operational changes that will help conserve energy.
In addition to the structural and physical upgrade of the existing facilities, the fund’s goal is to create multi-purpose community rooms to serve as epicenters for new resident services such as child enrichment programs, health and wellness activities, and other educational seminars.
“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,” Turner says.
Leadership teams for the fund are eyeing other potential investment communities in California, Texas and Illinois. Each investment is expected to range from $20 million to $90 million and will include both individual and multi-site properties.