With the closing of its three latest low-income housing tax credit (LIHTC) funds, WNC will look to support the construction or renovation of more than 2,300 affordable housing units in several states in the U.S.
The three funds raised a total of approximately $255 million in equity, which will be used for affordable housing projects in Alaska, Arkansas, California, Georgia, Maine, North Carolina, North Dakota, New Hampshire, Oregon, South Carolina, Tennessee, Texas and Washington. The fund will target multifamily and senior housing communities in urban, suburban and rural areas, according to WNC.
WNC’s Institutional Tax Credit Fund 51 L.P. raised the largest amount of equity of the three funds, closing at $132 million. Christine Cormier, WNC’s executive vice president of fund management and investor relations, told Multi-Housing News that WNC’s Fund 51, also known as Corp 51, garnered eight investors, six of which were repeat investors and two that were new investors.
WNC has already identified some projects for its Corp 51 fund, including the firm’s first project in New Hampshire named River Turn Woods Phase I. Cormier told MHN that the firm is expected to close on the 40-unit project in October. The Corp 51 fund will also provide equity to an adaptive reuse project in Skowhegan, Maine that will convert a former hospital and maternity ward that was built in 2016 into the Mary Street Apartments.
WNC also closed its Institutional Tax Credit Fund 10 California Series 19 L.P. that raised $79.9 million in equity. The California fund saw 11 total investors, including two new investors and nine repeat investors, Cormier told MHN. One of the fund’s first projects includes Courtyard Studios, the first affordable micro-studio housing development in Sacramento, Calif., that will offer 57 micro-studio units.
With a narrower scope, WNC closed a fund that will focus on affordable housing in Northwest Arkansas. The fund raised $44 million in equity, which will be used to construct six affordable housing communities in the state. The Northwest Arkansas fund had seven investors, including six new investors and one repeat investor, Cormier told MHN.
BILLIONS IN EQUITY RAISED
Cormier said in prepared remarks that these three funds will help protect existing affordable housing through renovations as well as meeting the dire demand for affordable housing by constructing more units.
With the closure of the three funds, WNC’s total equity raised since its inception now totals approximately $13.9 billion. The three recent funds follow several months after WNC closed its WNC Institutional Tax Credit Fund 50 at $176 million in April, marking the firm’s largest institutional LIHTC fund to date.