#United States #New York #affordable housing #Red Stone Equity #LIHTC Fund

Red Stone Equity Partners Achieves a Significant Milestone

Red Stone Equity Partners LLC, a prominent name in real estate finance, has proudly announced the closing of its largest multi-investor Low Income Housing Tax Credit (LIHTC) fund to date. Known as Fund 113, this fund has gathered a remarkable $263.2 million in equity and represents a vital advancement in providing affordable housing solutions nationwide. This achievement marks the company's 18th LIHTC fund offering in its 17 years of operation and signifies its ongoing commitment to addressing the affordable housing crisis across the United States.

Key Highlights of Fund 113

Fund 113 has secured investments from 10 institutional investors, with eight returning actors in Red Stone Equity’s previous funds, while two are newcomers. The capital raised will be instrumental in constructing and rehabilitating 1,672 units of affordable rental housing dispersed across 19 properties in 11 states. This mixed investment strategy is designed to serve a diverse array of tenants, from families and seniors to those with specific needs, like veterans and individuals overcoming challenges related to homelessness or disabilities.

Diverse Range of Housing Projects

Red Stone Equity has meticulously structured Fund 113 to ensure inclusivity in its housing projects. The fund plans to invest in 13 new construction sites, two renovation initiatives, and four adaptive reuse developments, which cleverly repurpose existing structures, such as an office and former school buildings. Additionally, eight of these properties will benefit from federal energy tax credits due to their commitment to renewable energy and energy-efficient features. Notably, nine of these developments will be led by Minority or Women-owned Business Enterprises (M/WBEs), underlining the company’s ethos of supporting diverse business participation in development endeavors.

Ryan P. Sfreddo, CEO of Red Stone Equity, expressed pride in the fund's closure, emphasizing its anticipated impact by stating, "We are very pleased to announce the closing of our largest multi-investor LIHTC fund vehicle to date, which will bring high-quality affordable housing to over 1,600 households in 19 different communities across our nation." He noted that the culture of collaboration, creativity, and perseverance are core to the company's identity and have propelled its growth over nearly two decades.

Achievements and Future Aspirations

The closing of Fund 113 is not just a triumph for Red Stone Equity but also reflects its broader ambition to facilitate substantial improvements in access to affordable housing. In 2024 alone, Red Stone Equity has successfully raised more than $1.3 billion in LIHTC equity capital, marking a significant contribution to the affordable housing sector. Previous to Fund 113, the company also concluded Fund 111, amassing $256.3 million, which collectively with Fund 113 will finance 38 communities encompassing 3,179 housing units.

According to Stephanie Kinsman, Managing Director of Investor Relations at Red Stone Equity, the LIHTC fund platform is essential for their continued business strategy, offering both diversification for investors and an avenue to meet the pressing housing needs in communities. Kinsman emphasized, "The successful closings of Fund 111 and Fund 113 are a testament to the power of public-private partnerships, and highlight the importance of the LIHTC program in being able to serve so many different resident constituents as we continue to confront and contain the affordable housing crisis gripping our nation."

A Commitment to the Future

Since its inception in 2007, Red Stone Equity has raised over $11 billion in tax credit equity. These funds have made a significant impact by financing the construction or rehabilitation of over 65,000 units of affordable housing across 48 states, as well as enabling solar energy projects. The firm continues to engage deeply with its investor and developer partners, prioritizing best-in-class services while striving to create homes for those in need and elevate community engagement through initiatives focusing on philanthropy, ESG, and diversity.

In conclusion, Red Stone Equity Partners stands as a beacon of progress and partnership in the affordable housing sector, catalyzing change and nurturing communities through its extensive investment and commitment to creating high-quality housing solutions.