Red Stone Equity Partners has closed Red Stone Equity Fund 84 Limited Partnership, a $207-million multi-investor Low Income Housing Tax Credit investment fund.
Along with other project-level financing sources, the proceeds from the fund will be used to finance the construction and rehabilitation of more than 1,600 units of affordable rental housing within 23 properties located in 11 different states.
Fund 84 is the eighteenth and largest for Red Stone, a privately-owned real estate finance and investment company specializing in affordable multifamily residential funds and financings. The fund includes investments from 12 different institutional investors, 11 of which are repeat Red Stone Equity investors. Red Stone Equity has now raised more than $340 million of LIHTC equity capital in 2021.
“Prior to the onset of COVID-19, more than one in four renter households in the US—roughly 12 million households—were spending more than half of their income on rent, leaving far too little for other necessities like food, medical care, and transportation,” said Ryan P. Sfreddo, president of Red Stone Equity in a prepared statement. “COVID-19 has only exacerbated this crisis as it has had a disproportionate impact on low- and moderate-income households and on communities of color.”
Red Stone Equity, which has offices in Boston, Charlotte, Chicago, Cleveland, New York, Los Angeles and San Diego, focuses on the syndication of LIHTCs and renewable energy tax credits. With more than $6.7 billion of tax equity raised and under management, Red Stone Equity has financed the development of nearly 50,000 affordable housing units across more than 532 properties located in 44 states, the District of Columbia and Puerto Rico.
While investors hit pause on LIHTC investing early in the pandemic, things seem to be opening back up for other firms, as well.
In April, Irvine-based WNC closed a record-setting capital raise for its latest LIHTC fund. WNC Institutional Tax Credit Fund 50 LP secured $176 million in equity commitments from 9 investors. The capital will support the development of 2,160 affordable housing units in 16 states. The record capital raise illustrates momentum in the LIHTC space and strong investor demand.
“The demand for affordable housing tax credit investing continues to be strong, evidenced by WNC’s record-setting capital raise in the past two closed funds,” Christine Cormier, WNC’s EVP of investor relations, told GlobeSt.com at the time. “Although the economy was challenged in 2020, our investors understood that the need for affordable housing was stronger than ever. While a couple of investors continue to take a pause, most are back to investing.”