Carlson and Isaacson formed the company for a couple of reasons, Carlson says. Carlson had been a VP in acquisitions with Chicago-based Equity Residential and Isaacson had been the EVP and CFO of Alliance Holdings LLC and had previously been the EVP and CFO of Laramar Group. "The two of us have spent a lot of time in larger corporate environments, and felt we could leverage off of that experience and follow something new," he says. "We felt there was opportunity to exploit certain parts of the market that were not being exploited."

Edgewater, which was constructed in 2006, was acquired with 30 tenant-in-common investors. The property has an occupancy rate in the "higher 90s," Carlson says. The average unit size is 950 sf and an average rental rate of $965.

Woodlands of Crest Hill was constructed in 1972 and was acquired as part of the firm's value-add portfolio. The average unit size is 637 sf with rents ranging from $600 to $950. The complex has an occupancy rate of 94%, Carlson says. Redwood Capital plans on spending between $4,000 and $4,500 per unit on renovating the interiors of the units with new cabinets, countertops and appliances in the kitchens and new vanities and tile in the bathrooms, in addition to six-panel doors and lighting packages, Carlson tells GlobeSt.com.

The firm is expected to close in late January on a 384-unit property in Lake County, Carlson tells GlobeSt.com. "It is located near a very large redevelopment of an older retail center," he says, that now has big box retailers like Wal-Mart, an LA Fitness and a Starbuck's, as well as a Holiday Inn. Redwood Capital also is planning on acquiring three properties in Denver and one in Atlanta for its value-add portfolio and properties in Indianapolis, Lexington, KY and Warner Robbins, GA for its tenant-in-common portfolio, Carlson tells GlobeSt.com.