PEF Advisors Preserves Affordable Senior Housing With Carroll Tower Acquisition In St Charles
Preservation Equity Fund Advisors (PEF Advisors) has acquired Carroll Tower, a 108-unit affordable senior housing community in St. Charles, Illinois. The six-story property, originally developed in 1984 as a Project-Based Section 8 community, serves residents 62 years of age or older and is positioned along the Fox River in downtown St. Charles, adjacent to Hotel Baker.
Carroll Tower features 108 one-bedroom units averaging 680 square feet, and offers a community room, food pantry, laundry facilities, outdoor parking and elevator access. The property is within walking distance of grocery stores, restaurants, retail and healthcare services. At closing in July 2026, Carroll Tower was 98.1 percent occupied.
PEF Advisors says Carroll Tower represents the firm’s third acquisition in the greater Chicago metro area and the sixth acquisition for Preservation Equity Fund 3. The firm plans to invest in capital improvements to address deferred maintenance and preserve the property as a quality affordable housing option 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’s acquisition highlights a preservation-focused approach to affordable housing in supply-constrained, higher-cost suburban markets. For operators and investors focused on multifamily preservation, the transaction underscores practical tools such as restructuring and mark-up-to-market underwriting that can extend affordability terms while positioning assets for deferred maintenance remediation and service restoration.
Multifamily operators, capital providers and local stakeholders will continue to watch preservation strategies that balance financial feasibility with long-term affordability, especially in markets where demand for senior affordable housing is rising faster than supply. PEF Advisors’ continued activity in the Chicago MSA reinforces the role of targeted acquisitions in maintaining housing options for older adults in established communities.