Red Stone Equity Partners Closes $263M LIHTC Fund
The investment vehicle will finance the construction and rehab of affordable units.
Red Stone Equity Partners has closed its largest LIHTC equity investment fund to date, raising $263.2 million. Dubbed Fund 113, the investment vehicle will finance the construction and rehabilitation of 1,672 affordable housing units across 19 communities throughout 11 different states.
Partnering with both non-profit and for-profit developers, Red Stone aims to invest in affordable assets serving tenants on a wide spectrum of income levels including seniors, veterans, individuals living with disabilities, as well as people facing homelessness or those struggling with substance abuse.
Of the 19 projects, eight will also qualify for federal energy tax credits through their green building practices and nine will be developed by Minority or Women-owned Business Enterprises.
READ ALSO: What’s Next for Affordable Housing?
Fund 113 will invest in 13 ground-up affordable developments and two renovation projects. Additionally, the investment vehicle will also provide equity for four adaptive reuse projects including an office-to-affordable and two school-to-affordable housing conversions, as well as the repurposing of a decommissioned historic armory.
Creating affordable housing through adaptive reuse
Utilizing proceeds outside of its latest fund, Red Stone syndicated LIHTC for another adaptive reuse project in Lawrence, Mass. Developed by Trinity Financial, the 87-unit Fábrica Lofts debuted last year. The $47 million project transformed a historic mill built in the late 1890s.
Red Stone also syndicated $18.3 million in LIHTC for Jamboree Housing Corp.’s hospitality-to-residential conversion project in Santa Ana, Calif., dubbed Estrella Springs. The 89-unit community opened last month.
Red Stone’s partnership with CVS Health
Inclusive of Fund 113, Red Stone has raised upward of $1.3 billion in LIHTC equity throughout so far this year. Also in 2024, the company closed Fund 111 at $256.3 million which combined with Fund 113 will finance the development and rehabilitation of 3,179 affordable housing units throughout the country.
One investor that has often partnered with Red Stone is CVS Health. In October, CVS provided tax credit equity through one of Red Stone’s funds for the development of a 67-unit affordable project in Fort Worth, Texas. NRP Group and JPS Health Network are developing the community, dubbed Thrive on Crawford.
In 2022, CVS invested roughly $18.4 million through Red Stone for the development of The Arthur @ Blackstone, a 41-unit affordable housing community in Fresno, Calif. Developed by Fresno Housing, the property debuted earlier this year.
