Preservation Equity Fund Advisors Completes Acquisition of Carroll Tower Preserving Affordable Senior Housing in St Charles Illinois

Preservation Equity Fund Advisors (PEF Advisors) has completed the acquisition of Carroll Tower, a 108-unit affordable senior housing community in St. Charles, Illinois. Carroll Tower, originally developed in 1984 as a Project-Based Section 8 community, serves residents 62 years of age and older and sits along the Fox River in downtown St. Charles, adjacent to Hotel Baker. The property closed in July 2026 and was 98.1 percent occupied at closing.

The six-story building contains 108 one-bedroom units averaging 680 square feet and includes a community room, food pantry, laundry facilities, outdoor parking and elevator access. Its central location places residents within walking distance of grocery stores, restaurants, retail and healthcare services. PEF Advisors plans to invest in capital improvements to address deferred maintenance and preserve the property as a high-quality affordable housing community for current and future residents.

"This was an important opportunity to preserve affordable housing as it was at risk of losing its affordability restrictions," said Ann Caruana, President and Chief Investment Officer of PEF Advisors. "By restructuring the transaction and applying for a mark-up-to-market on the Section 8 contract during escrow, we were able to extend the affordability an additional 20 years. Our first course of business will be to restore services to the residents."

Carroll Tower represents PEF Advisors' third acquisition in the greater Chicago metropolitan area and the sixth acquisition for Preservation Equity Fund 3. The transaction underscores a focused strategy to preserve existing affordable housing in supply-constrained, high-cost markets where rising housing costs continue to outpace supply, particularly for older adult households.

For operators, owners and investors in the multifamily sector, this transaction highlights practical tools available to preserve affordability and extend contract terms within federally assisted programs. Restoring services and addressing deferred maintenance while maintaining resident stability are central to sustaining affordability in mature suburban markets. Multifamily Leadership will continue to track how underwriting approaches and contract restructuring are applied across markets to maintain critical affordable housing stock.