Canyon Capital, Citi Launch $800M Workforce Housing Fund
- May 09, 2013
Canyon Capital Realty Advisors and Citi are joining forces to kick off Canyon Multifamily Impact Fund, a new investment vehicle that will target the acquisition of workforce housing in underserved communities across the country. The partners are bringing ample resources to the endeavor; Canyon Multifamily Impact Fund will purchase as much as $800 million in assets.
CCCRA and Citi are wasting no time getting started. The team helming the effort will comb areas in California, Texas and Illinois, with a goal of purchasing properties ranging in price from $20 million to $90 million. The fund will manage the properties, and institute upgrades in an effort to boost the living experience for residents, as well as realize enhanced value and financial returns.
“Amid increased housing costs across the United States, the need for quality workforce housing near employment centers is higher than ever,” said Dan Millman, principal at Canyon Capital. “We are focused on acquiring and improving well-positioned properties that offer affordable rental housing options for local residents.”
The gap between supply and demand in affordable housing has never closed in the U.S., and in the wake of the Great Recession, the disparity is monumental. The numbers at the peak tell the story. According to a 2012 report by Harvard University’s Joint Center for Housing Studies, 8.1 million low-income renters competed for 5.7 million affordable units in 2001, and by 2010, the shortfall had more than doubled to 5.1 million units.