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ANAHEIM, CA—Canyon Partners Real Estate LLC has made its first acquisition through Canyon Multifamily Impact Fund III LLC, a joint venture between Canyon and CIT Bank, N.A. Canyon has acquired a leasehold interest in Coronado Palms, a 169-unit apartment community here, with CIT Bank's real estate finance business providing an approximately $25-million senior secured loan to fund the acquisition.
Canyon declined to comment further to GlobeSt.com on its capital-improvement plan for the property, and GlobeSt.com was unable to determine the name of the seller before deadline. According to Mike Pedone, managing director of CIT, “The acquisition of Coronado Palms is a perfect example of CIT's commitment, in conjunction with Canyon Partners, to bringing quality affordable housing to working families in Southern California. Its proximity to transit, employment, education and healthcare make it an ideal location, and our capital-improvement plan will enhance the property through targeted building upgrades that help enrich the quality of life for its residents.”
The 5.21-acre property consists of 11 three-story buildings totaling 151,067 leasable square feet. Since 2013, the property has undergone several upgrades, including improvements to the pool deck and new equipment for the fitness center. The property also includes community laundry facilities, a dog park, barbeque area and children's playground.
Canyon says CMIF III is strategically positioned to target acquisition opportunities in Southern California and promotes the implementation of social programs through a variety of education, healthcare and community initiatives designed to benefit both residents and the communities in which they live and work. This is the third fund within Canyon's workforce housing platform dedicated to advancing community development and embracing environmental responsibility. CMIF III is also directly in line with CIT's pledge to invest in the betterment of the communities in which it serves.
Coronado Palms represents CMIF III's first acquisition since it was launched in late 2016. FPI Management, a California-based management company, has been engaged as the property manager.
Coronado Palms is situated in central Anaheim, just west of I-5 and benefits from being located near strong employment drivers including Disneyland Resort, the Anaheim Convention Center & Resort District and the Platinum Triangle, a district of Anaheim that is transforming from a low-density commercial and industrial zone into a vibrant urban mixed-use environment with high-density housing, commercial office towers and retail.
CMIF III builds on the success of Canyon's existing multifamily impact funds, which aim to improve workforce multifamily properties by making long-term, material, positive impacts in targeted communities across the US. To date, the funds have acquired more than $400 million of workforce housing, representing more than 3 million square feet and more than 3,900 units.
Canyon has a broad range of experience investing in California. In the past five years, Canyon has deployed over $1 billion in 46 California investments through senior loans, mezzanine loans, preferred equity and common equity, with nearly $600 million of investments in Southern California alone.
Canyon's funds have a history of adding value in some context to the real estate industry. As GlobeSt.com reported in December 2016, the Canyon Catalyst Fund was designed to identify high-quality emerging managers and support them in the context of a “mentoring” investment-manager model, Canyon co-head of real estate investments and director of asset management Maria Stamolis told us. At that time, Sack Properties, a San Francisco-based real estate investment company, in its programmatic joint venture with Canyon, had sold Vio Tustin, a 165-unit garden-style apartment community in Tustin. The sale was the partnership's fifth disposition through the Canyon Catalyst Fund, the California Public Employee's Retirement System real estate emerging manager program, which is managed by Canyon.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
