Boston Capital Launched $150M Affordable Apartments Fund

By Anuradha Kher, Online News EditorBoston–Boston Capital has opened Boston Capital Tax Credit Fund XXXII, a $150 million diversified portfolio of affordable apartment properties throughout the U.S.    “Given the high quality of assets in Fund XXXII, we anticipate strong investor interest in this offering,” says Kevin Costello, director of Institutional Investing at Boston Capital.…

By Anuradha Kher, Online News EditorBoston–Boston Capital has opened Boston Capital Tax Credit Fund XXXII, a $150 million diversified portfolio of affordable apartment properties throughout the U.S.    “Given the high quality of assets in Fund XXXII, we anticipate strong investor interest in this offering,” says Kevin Costello, director of Institutional Investing at Boston Capital. “With the rise in LIHTC yields to the double digit, after-tax level and the drop in Treasury rates, yield spreads are back to levels not seen since 1993. These economic factors, in addition to the ability to use the credit to reduce alternative minimum tax (AMT), are attracting old and new economic investors to the LIHTC program. We view this as an opportunity to broaden the market for these transactions while diversifying the equity market for our developer partners.”  This new launch follows the successful closing of Fund XXXI, a nationally diversified portfolio of 30 affordable apartment properties in 12 states with total equity invested of $120 million. Boston Capital’s Fund XXXI included 12 developments for seniors and 18 properties focused on families and added an additional 2,109 apartment units to Boston Capital’s holdings, which currently total over 166,500 apartments.  Boston Capital expects to launch and close two multi-investor national funds, including Fund XXXII, totaling $250 to $275 million by March 2010. Boston Capital will also continue to close business with its proprietary fund relationships, which cater to those investors seeking customized portfolios.

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