Key Takeaways
- • Preservation Equity Fund Advisors closed the acquisition of Carroll Tower, a 108-unit affordable senior housing community in St. Charles, Illinois, in July 2026, representing the firm's sixth acquisition under Preservation Equity Fund 3 and its third investment in the greater Chicago MSA.
- • Carroll Tower is a Project-Based Section 8 property originally developed in 1984, serving residents 62 years of age or older, with 98.1% occupancy at closing and one-bedroom units averaging 680 square feet.
- • The property was at risk of losing its affordability restrictions, making this acquisition strategically important to preserve long-term affordable housing in Kane County, where rising housing costs continue to outpace supply in a high-cost suburban market one hour west of Chicago.
- • PEF Advisors plans capital improvements to address deferred maintenance and enhance the six-story residential building, which features a community room, food pantry, laundry facilities, and outdoor parking, positioned along the scenic Fox River in historic downtown St. Charles with proximity to retail, dining, and healthcare services.
- • Ann Caruana, President and Chief Investment Officer of PEF Advisors, emphasized the deal's significance in preserving affordable senior housing during a period of acute supply constraints in the region.
Summary
Preservation Equity Fund Advisors announced the completion of its acquisition of Carroll Tower on July 13, 2026, a 108-unit affordable senior housing community located in St. Charles, Illinois. The transaction closed in July 2026 and marks the firm's sixth acquisition within Preservation Equity Fund 3, as well as its third investment in the greater Chicago metropolitan statistical area. Carroll Tower serves a critical market need, providing affordable housing exclusively for residents age 62 and older in a region experiencing significant supply constraints relative to demand for senior housing.
Originally developed in 1984, Carroll Tower operates as a Project-Based Section 8 property, meaning it benefits from federally subsidized rental assistance. The community consists of a six-story residential building positioned prominently along the Fox River in the heart of historic downtown St. Charles, directly adjacent to the iconic Hotel Baker. The property comprises 108 one-bedroom units with an average size of 680 square feet. At the time of closing, the asset maintained a 98.1% occupancy rate. Amenities include a community room, food pantry, laundry facilities, and outdoor parking, with elevator access throughout. The property's location provides residents with walkable proximity to grocery stores, restaurants, retail establishments, and healthcare services.
According to Ann Caruana, President and Chief Investment Officer of PEF Advisors, "This was an important opportunity to preserve affordable housing as it was at risk of losing its affordability restrictions." This underscores the strategic rationale behind the acquisition: Carroll Tower faced potential conversion away from affordable housing, and PEF Advisors' acquisition ensures long-term affordability preservation. PEF Advisors has committed to capital improvements addressing deferred maintenance while enhancing overall property quality for current and future residents. The investment strategy aligns with the firm's broader focus on acquiring and preserving existing affordable housing assets in high-cost metropolitan markets where supply-demand imbalances create both preservation risks and investment opportunities.
Originally developed in 1984, Carroll Tower operates as a Project-Based Section 8 property, meaning it benefits from federally subsidized rental assistance. The community consists of a six-story residential building positioned prominently along the Fox River in the heart of historic downtown St. Charles, directly adjacent to the iconic Hotel Baker. The property comprises 108 one-bedroom units with an average size of 680 square feet. At the time of closing, the asset maintained a 98.1% occupancy rate. Amenities include a community room, food pantry, laundry facilities, and outdoor parking, with elevator access throughout. The property's location provides residents with walkable proximity to grocery stores, restaurants, retail establishments, and healthcare services.
According to Ann Caruana, President and Chief Investment Officer of PEF Advisors, "This was an important opportunity to preserve affordable housing as it was at risk of losing its affordability restrictions." This underscores the strategic rationale behind the acquisition: Carroll Tower faced potential conversion away from affordable housing, and PEF Advisors' acquisition ensures long-term affordability preservation. PEF Advisors has committed to capital improvements addressing deferred maintenance while enhancing overall property quality for current and future residents. The investment strategy aligns with the firm's broader focus on acquiring and preserving existing affordable housing assets in high-cost metropolitan markets where supply-demand imbalances create both preservation risks and investment opportunities.
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