Angelides describes the new fund as "an extraordinaryopportunity to respond to the growing need for rental work forcehousing in America's urban centers." He cites a series of factorsthat are driving the demand for new rental housing in cities, whichin turn is driving the new investment effort by Canyon Capital.

Among the factors Angelides cites are a projected increase of120 million in a US population that is expected to grow primarilyin urban areas, rising popular and governmental pressure toconstrain suburban development in favor of more concentrateddevelopment in cities because of concerns about global warming, anda projected need for more than four million new rental units in theUS over the next 10 years. "There is a great opportunity to buyrental properties, improve them, green them and really create agood living environment for working people in urban centers,"Angelides says.

Turner tells GlobeSt.com that the Canyon Johnson UrbanCommunities Fund is "just a logical brand extension forCanyon-Johnson," which also sponsors a fund with a similar name buta different strategy. The other fund is the Canyon Johnson UrbanFund, which is a development vehicle that provides equity capitalto local development partners in cities around the US. The new funddiffers in that it will be a platform to directly purchase existingfor-rent housing, Turner explains.