Red Stone Equity Partners Sets New Heights with $1.43 Billion in Equity to Boost Affordable Housing Efforts

Red Stone Equity Partners: A New Milestone in Affordable Housing

In what industry insiders are calling a landmark achievement, Red Stone Equity Partners LLC has successfully raised $1.43 billion in equity for the year 2024. This triumph not only underscores the company’s significant role in the affordable housing sector but also reflects its strategic expansion in corporate leadership to drive future growth.

Founded in 2007, Red Stone Equity has built a strong reputation as a privately-owned real estate finance and investment firm. It specializes in affordable multifamily fund management and has seen remarkable progress, raising over $11.3 billion in equity since inception. The record-breaking fundraising in 2024 represents a substantial contribution to Red Stone's mission of creating more affordable housing options across the United States.

The equity raised this year included a variety of funding sources, marking a diverse approach in its financial strategy. A substantial $835 million was secured through proprietary Low Income Housing Tax Credit (LIHTC) fund format, complemented by $578 million from multi-investor LIHTC fund format and an additional $14.8 million from their first-ever non-LIHTC preservation fund. This diversification speaks volumes about the firm’s commitment to affordable housing as well as their adaptiveness in a financially complex landscape.

In 2024 alone, Red Stone Equity’s investment funds played a vital role in the financing of 73 LIHTC properties, which are spread across 26 states and developed by 57 different partners. To date, the firm’s sponsored investment funds have financed the construction and rehabilitation of over 800 LIHTC properties comprising more than 68,000 affordable units. In addition, they have supported the installation of 932 megawatts of solar energy across 46 states, D.C., and Puerto Rico, demonstrating a dual commitment not only to affordable housing but also to sustainable energy solutions.

Among the noteworthy accomplishments in 2024 was the closure of its two largest multi-investor LIHTC fund vehicles: Fund 111 and Fund 113. Fund 111, which totals $256.3 million, involved ten institutional investors, while Fund 113 amounted to $263.2 million and included the same number of investors. Collectively, these funds are projected to help finance the construction or rehabilitation of 38 affordable housing communities, thereby providing 3,179 crucial rental units and creating approximately 8,200 jobs within these communities.

Adding an exciting layer to its strategic initiatives, Red Stone Equity also delved into the affordable housing preservation sector. Their investment in Forest Park Apartments—a 228-unit affordable housing community in Austin, Texas—ensured that the property would remain affordable and not convert to market-rate housing. This move signals the company's responsiveness to the pressing housing challenges faced in high-cost markets, showcasing their dedication to not only building new units but also preserving existing affordable options.

Ryan P. Sfreddo, the CEO of Red Stone Equity, expressed immense pride in the results from 2024. He highlighted how the success was a testament to the firm’s dedicated team, supportive partners, and a solid operational platform established over nearly two decades. Sfreddo also acknowledged the ongoing housing crisis, emphasizing that the need for affordable housing solutions is more urgent than ever. Moving forward, Red Stone is committed to furthering its strategic plan to address these challenges.

As part of the company’s growth story, Red Stone Equity has made significant promotions within its executive management ranks. Alyssa Thomas, previously the Managing Director of Portfolio Management, has stepped up as the firm’s first female Chief Financial Officer, reinforcing the company’s commitment to diversity in leadership. Alongside her, Darren Swanson has joined the executive team as Managing Director of Acquisitions. This expansion brings the total number of executive team members to 12, indicating a rich diversity of skills and backgrounds to enhance Red Stone's capabilities.

In conclusion, Red Stone Equity Partners is not just a leader in affordable housing finance; it is a proactive force addressing critical housing needs while nurturing robust leadership to navigate future challenges. With strategic investments, innovative fund structures, and a commitment to preserving existing properties, the firm stands poised for continued success as it champions affordable housing initiatives across the nation.

For more information about Red Stone Equity Partners LLC, visit their website or follow them on LinkedIn and Twitter.