CHICAGO—The multifamily market in the Chicago area has tightened considerably, and investors have been buying up many properties, including ones that still need a little work to achieve full value.

Canyon Partners Real Estate LLC, through its Canyon Multifamily Impact Fund II, has just acquired a 730-unit apartment community in suburban Crest Hill about 40 miles southwest of downtown Chicago. The 17-building property, known as Woodlands of Crest Hill, totals 473,524 square feet across 17 acres. This was the first closing by CMIF II, which the company launched in November 2015.  

Canyon certainly considers the suburban Chicago market quite attractive. As reported in GlobeSt.com, with CMIF I the company recently expanded its holdings here by purchasing Parkway Commons in Carol Stream. The 384-unit apartment community, then its fifth in the metro area, sits adjacent to Preserve at Carol Stream, a 285-unit apartment community that the CMIF acquired the previous September. Canyon officials said they would combine the properties to create a 669-unit community and enhance services to the residents.

CMIF II is the second joint venture between Canyon and Citi Community Capital that seeks to address the need for high quality workforce housing in IL, CA, and FL. The fund invests in multifamily properties and focuses on delivering community services and physical upgrades. CMIF I now owns seven properties with a total of 2,746 units located around the Chicago, Los Angeles and Miami metro areas. 

CMIF II plans to invest several million dollars in a capital improvement plan to enhance Woodlands of Crest Hill and provide services focused on education, healthcare, sustainability, and security for its residents. Marquette, which manages all of Canyon's suburban Chicago multifamily assets, has been hired as the property manager.

"Woodlands of Crest Hill is a great example of the positive impact CMIF II will have on workforce housing in areas like Chicago," said Richard Gerwitz, co-head of Citi Community Capital. "We are excited to see the fund continue the work of its predecessor fund by upgrading residents' homes and adding additional services."