PEF Advisors Acquires Carroll Tower Apartments in St. Charles, Ill.
Preservation Equity Fund Advisors, LLC (PEF Advisors) has announced the acquisition of Carroll Tower, a 108-unit affordable senior housing community located in St. Charles, Illinois. This acquisition marks PEF Advisors' third property in the greater Chicago metropolitan area.
Originally developed in 1984 as a Project-Based Section 8 community, Carroll Tower offers affordable housing for residents aged 62 and older. Situated approximately one hour west of Chicago, the property aims to address the increasing demand for affordable senior housing in Kane County, where housing costs have been rising faster than supply.
The six-story building is located along the Fox River in downtown St. Charles, adjacent to the Hotel Baker. Carroll Tower includes 108 one-bedroom units averaging 680 square feet, along with amenities such as a community room, food pantry, laundry facilities, outdoor parking, and elevator access. The property is also within walking distance of grocery stores, restaurants, retail outlets, and healthcare services, achieving an occupancy rate of 98.1% at the time of closing.
PEF Advisors plans to invest in capital improvements to enhance the property and address deferred maintenance, ensuring that Carroll Tower remains a high-quality affordable housing option for both current and future residents. Ann Caruana, President and Chief Investment Officer of PEF Advisors, emphasized the importance of this acquisition, stating, "This was an important opportunity to preserve affordable housing as it was at risk of losing its affordability restrictions." She added that by restructuring the transaction and applying for a mark-up-to-market on the Section 8 contract during escrow, the company was able to extend the affordability period by an additional 20 years. Caruana noted that restoring services to the residents will be the first priority.
The acquisition of Carroll Tower, which closed in July 2026, represents PEF Advisors' sixth property for Preservation Equity Fund 3. The firm continues to pursue its strategy of acquiring and preserving affordable housing in areas constrained by supply and experiencing high housing costs across the United States.