#United States #New York #affordable housing #R4 Capital #LIHTC

R4 Capital's Remarkable Year: Surpassing $10.6 Billion

In an unprecedented achievement, R4 Capital, widely recognized for its work in affordable housing, announced a historic milestone in early January 2025. The company revealed that it exceeded $10.6 billion in equity and mortgage financing in 2024 alone. This impressive figure marks not only the largest single-year equity closed by R4 but also the most significant quarter for mortgage loan volume and the largest single asset equity investment in the company's history.

Significant Equity Raised

In a landmark year, R4 Capital successfully closed $860 million of equity through collaboration with 50 institutional investors, which included 12 newcomers. Jason Gershwin, the Managing Director and Director of Fund Management, expressed his delight, stating that 2024 represented the most capital they had managed to deploy in a single year, especially notable considering the hurdles presented by an election year.

Since its inception in 2012, R4 Capital has effectively raised and managed over $6.6 billion in Low-Income Housing Tax Credit (LIHTC) equity from a broad base of 138 institutional investors spread across 37 multi-investor funds and 13 proprietary funds.

Enhanced Mortgage Capital Deployment

R4 Capital Funding (R4CF), the company's tax-exempt lending platform, also highlighted considerable efforts in the affordable housing sector by providing $691 million of construction and permanent mortgage capital in 2024. This funding facilitated the construction and preservation of 3,828 units of affordable housing. James Spound, the President of R4CF, remarked that 2024 was the second-largest year of capital deployment in the platform's nine-year history, especially challenging due to rising interest rates and severe construction cost inflation. Murray emphasized their commitment to delivering a responsive and creative mortgage platform that benefits both investors and developers.

Transactions and Investments

Throughout 2024, R4 Capital closed a total of 56 transactions across all its business lines, showcasing strong relationships with both returning and new developer partners. Notably, this year also marked the closing of R4's largest LIHTC equity investment to date, with the company raising $100 million from six investors to finance much-needed housing developments in Silicon Valley. The support and commitment of their partners have been pivotal for R4 Capital, reinforcing their mission to address affordable housing shortages.

R4 Capital's growing influence in the national affordable housing market is reflected in their extensive portfolio, which now includes over 70,000 units of affordable housing. The achievements of 2024 solidify R4 Capital's position as a leader in this vital sector. As they look towards the future, the firm remains committed to furthering its mission of creating sustainable, affordable housing solutions across the United States.

For more information about R4 Capital's initiatives and accomplishments, visit their website or follow their latest updates on their news releases.