Low-Income Housing Tax Credit Multi-Investor Fund Activity
By Glenn Petherick
5 min read
Boston Capital finished closing a $193 million national multi-investor fund in late March that has a projected after-tax IRR to investors of 7.25%, said Jeff Goldstein. The company is on the street with a new $150 million national fund (7% IRR) that was 50% specified in properties as of early April.
Boston Financial Investment Management launched a $125 million national multi-investor fund in March that has a projected yield of 7.10% and is scheduled to close in July with six investors, said Sarah Laubinger. She said the company plans to roll out another $125 million national fund in the second half of 2014.
City Real Estate Advisors, Inc. expects a June closing of its current $112 million national multi-investor fund that is fully subscribed with five investors and was about 90% specified with 18 properties in 11 states as of early April. According to Tony Bertoldi, the fund has five investment categories with different projected yields: Super Premium Class (7.25% yield); Premium Class (7.1%); Class A (6.90%); California Investor Class (6.6%); and Florida Investor Class (6%). Super Premium Class is for investors contributing 40% of the total equity raised for the fund across any combination of investment classes; Premium Class, for 25% or more.
Enterprise Community Investment, Inc. is out with a new multi-investor, multi-yield fund that provides investors with market yields according to the CRA location, according to Raoul Moore. Enterprise Housing Partners 25, which has a similar structure to EHP 24 in 2013, is expected to be $250-300 million in size and close in July.
Great Lakes Capital Fund launched a $130 million regional multi-investor fund on March 31, targeted to close in September, which will include properties in Indiana, Illinois, Michigan, Minnesota, Upstate New York, and Wisconsin, said Marge Novak. There are two target yields: 7.26% for investors investing $25 million or more, and 7% for investors contributing less. GLCF has also launched two state multi-investor funds, each with target sizes of $15 million, for Michigan and Indiana (6.81% target yield for both).
National Equity Fund recently closed a roughly $55 million Homestead multi-investor fund (target 6% yield, focused on the Northwest) and is on the street with a $70 million California fund (5% yield) and a roughly $42 million Northeast fund (5.75%), according to Mark Siranovic. NEF is also looking at a second Chicago-focused fund and a Texas fund and is starting discussions with investors about a 2014 national fund targeted at $100 million with a 7% return.
R4 Capital, Inc. expected before the end of April to close in the last $30 million of investor equity into a national multi-investor fund that will finish up at $125 million in size, according to Marc Schnitzer. The fund has a projected yield of 7.5% for investors investing $20 million or more and 7.25% for investors contributing less. In March, the company rolled out a new $150 million national fund that also has two investor classes with the same yields that is fully subscribed in investors and fully specified with 20-25 properties. The goal is to close the fund in June. R4 Capital finished up a $57.5 million California multi-investor fund in March (6% yield) and closed a separate $35 million California fund in the first quarter.
RBC Capital Markets’ Tax Credit Equity Group is targeting a June closing for its current $100 million national multi-investor fund (7% IRR), which is fully specified in properties, according to Tammy Thiessen. The company is also out with a $37 million California multi-investor fund (5.6% IRR) that is almost fully subscribed by investors. All of the properties have been closed into the fund.
Raymond James Tax Credit Funds, Inc. closed a $72.5 million California fund in February that has 10 investors, according to Steve Kropf. The fund has three tiers of yields ranging from 4.5% to 5.5% depending on the geography sought by the investor for CRA purposes. The company plans to launch a new $150 million national multi-investor fund (7% anticipated yield) in the second quarter.
Red Stone Equity Partners recently launched a $100 million national multi-investor fund with a projected yield of 7% that is expected to invest in approximately 14 underlying assets, according to Ryan Sfreddo.
The Richman Group has closed $110 million in investor equity so far into a national multi-investor fund (7.25% yield) that may be expanded for certain CRA investors for an additional $30 million, said Stephen Daley. The company is preparing to roll out a $200 million national fund (7% targeted yield).
Stratford Capital Group is about to roll out a new national multi-investor fund expected to be $100 million to $125 million in size with an anticipated yield of 7% to 7.15%, said Ben Mottola.
WNC launched a California multi-investor fund in late January that is fully specified in properties and expected to finish around $45 million in size, according to Michael Gaber. The fund has a projected yield of 7% for investors investing $10 million or more and 6% for investors investing less. In late March, the company launched a new national multi-investor fund with an expected size of $105 million that is fully specified in properties. Projected yields are 7.25% for investors contributing $25 million or more and 7% for investors contributing less.
