Red Stone Equity Partners Closes $207M LIHTC Fund

The vehicle marks the firm’s largest ever and will help create or rehabilitate more than 1,600 affordable units.
Photo by Micheile Henderson on Unsplash

Red Stone Equity Partners, a privately-owned real estate finance and investment firm specializing in multifamily funds and financings, has closed its largest fund in the company’s history—a $207 million multi-investor Low Income Housing Tax Credit investment fund. The fund’s proceeds will help provide more than 1,600 units of affordable housing across the U.S.

Ryan Sfreddo, president of Red Stone Equity, said in a prepared comment the closing of Fund 84 comes at a critical time when the country is facing a growing affordable housing crisis exacerbated by the pandemic. He noted the COVID-19 crisis has also had a disproportionate impact on low- and moderate-income households and communities of color. 

Red Stone Equity – Fund 84 LP is the 18th and largest Red Stone Equity multi-investor offering to close since the company’s inception and includes investments from 12 different institutional investors, including 11 repeat investors. With the closing of Fund 84, Red Stone Equity has now raised more than $340 million of LIHTC equity capital in 2021. Red Stone has raised more than $6.7 billion of tax credit equity since inception.

Construction and rehabilitation

Fund 84’s proceeds will be used, along with other project-level financing sources, to finance construction or rehabilitation of more than 1,600 units of affordable housing contained within 23 properties in 11 states. Red Stone Equity, which focuses on the syndication of LIHTCs and Renewable Energy Tax Credits, has financed more the development of nearly 50,000 units of affordable housing across more than 532 properties in 44 states, Washington, D.C. and Puerto Rico.

In December, Red Stone Equity provided tax-credit equity syndication, along with Bank of New York Mellon, as investor and letter of credit provider, for the construction of a $97 million 179-unit workforce housing development in New Rochelle, N.Y. Financing sources for Renaissance at Lincoln Park included $48 million in tax-exempt bonds issued by the Housing Finance Agency of the New York State Homes and Community Renewal.