Red Stone Equity Closes $233M LIHTC Fund

Photo by Josh Appel on Unsplash Red Stone Equity Partners, a privately-owned real estate finance…

Photo by Josh Appel on Unsplash

Red Stone Equity Partners, a privately-owned real estate finance and investment firm specializing in affordable multifamily residential funds and financings, has closed its largest LIHTC fund offering in company history—a $233 million multi-investor Low Income Housing Tax Credit investment fund known as Red Stone Equity—Fund 95 LP.

Fund 95 is the 18th and largest Red Stone Equity multi-investor fund offering to close since the company was founded 15 years ago. It includes investments from nine different institutional investors, six of which are repeat investors and three of which are first-time Red Stone Equity investors. The proceeds will be used, along with other project-level financing sources, to finance the construction and/or rehabilitation of more than 1,700 units of affordable housing within 24 properties in 12 states.

Stephanie Kinsman, Red Stone Equity’s managing director of investor relations, said in a prepared statement the closing of Fund 95 comes at a time when affordable housing is desperately needed. She said rent increases and inflation are making the situation even worse for many hard-working people and Red Stone Equity will continue to do its part to alleviate the growing affordable housing crisis.

Red Stone Equity Activity

Red Stone Equity has had a strong first half of 2022 raising nearly $650 million for its various affordable housing investment funds. Last year marked the firm’s most successful year for fundraising activity. In 2021, Red Stone Equity closed its 12th and 13th national multi-investor LIHTC funds and fourth California-only LIHTC fund offering. Those activities and others helped the company finish the year with $7.6 billion in tax credit equity raised since the firm’s inception.

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Red Stone Equity last year also raised $1.1 billion of tax equity from 35 different LPs in 2021, comprised of $1.07 billion of affordable housing equity and $46 million of renewable energy tax equity. Within its affordable housing vertical, company-sponsored investment funds invested in 71 LIHTC properties developed by 48 developer partners and containing more than 5,500 affordable rental homes in 24 states.

Since its founding in 2007, Red Stone Equity sponsored investment funds have financed the construction and/or rehabilitation of 589 LIHTC properties containing more than 50,000 units of affordable housing and 932 megawatts of solar energy installations.

In May 2021, the firm closed Fund 84 LP, a $207 million multi-investor LIHTC investment fund with proceeds that helped provide more than 1,600 units of affordable housing within 23 properties in 11 states.