LOS ANGELES—Canyon Partners Real Estate and Citi Community Capital have partnered to launch the Canyon Multifamily Impact Fund II, a $50 million fund that will invest in workforce housing in underprivileged communities. The fund seeks to provide long-term, material, positive impacts to the residents living in those communities, and will focus on the Florida, California and Illinois markets.
This is the second fund launched by Canyon Partners and Citi Community. The first impact fund acquired 2,345 workforce-housing units in Chicago and Los Angeles. Like CMIF I, CMIF II will also focus on value-add investments in these markets, and will invest additional capital to improve the operations and sustainability of the properties. Additionally, the fund will also implement educational programs and healthcare screenings for the onsite residents at the properties. Both Canyon Partners and Citi Community Capital declined to comment for the story.
While this is Canyon Partners second social impact fund with Citi Community, the concept of social impact investing is gaining runway. Bobby Turner of Turner Impact Capital and the former chairman and CEO of Canyon Capital has launched several social impact investment funds for workforce housing and charter schools. Each of his funds will invest $1 billion into these property types. Likewise, workforce housing as an investment class is in high demand. Investors like Bob Hart of Truamerica Multifamily have pinpointed workforce housing as value-add investment class with strong yields, and are investing in markets near or just outside of urban cores.
Canyon Partners and Citi Community Capital call these investments "active ownership." The first fund launched in 2013, by Turner, with the intention to acquire and manage $800 million in properties. While we know this fund will invest an additional $50 million into workforce housing, Canyon and Citi Community did not disclose the number of properties or the value of the properties that the fund will target.
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