Low-Income Housing Tax Credit Multi-Investor Fund Activity

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Boston Capital expects to close a $188 million national multi-investor fund in the first quarter of 2014, said Jeff Goldstein. The fund, 100% specified in properties, has a projected IRR to investors of 7.25%.

Boston Financial Investment Management closed a $125 million national multi-investor fund in November, its second multi-investor fund closed in 2013, said Sarah Laubinger. The fund has a projected yield of 7.5%, five investors, and is financing 21 properties in 13 states, she said. The company is preparing a new national fund expected to roll out in early March with an estimated size of $100-$125 million and anticipated baseline yield of 7%.

City Real Estate Advisors, Inc. closed a $131 national multi-investor fund in November, said Tony Bertoldi. It has four investment classes with different projected yields: Premium, for investors investing $25 million or more (7.6% yield); Class A, for investors investing less than $25 million (7.35%); California Class (6.4%); and New York Class (6.15%). CREA soon expects to launch a new national fund of just over $100 million. The company has a roughly $32 million Hawaii multi-investor fund on the street offering investors federal and/or state housing tax credits.

Enterprise Community Investment, Inc. will probably roll out a new multi-investor fund in March or April, closing in the summer, said Amy Dickerson. She indicated it will be similar to a $143.9 million innovative multi-investor fund (EHP 24) that Enterprise closed in August that had four different tiers offering varied yields due to investment in some properties with national fund pricing and some properties with regional fund pricing (Pacific Northwest, California, Chicago).

Great Lakes Capital Fund is working on offering documents for three multi-investor funds expected to launch by April, said Marge Novak. These include a roughly $130 million, six-state regional fund (Ill., Ind., Mich., Minn., N.Y., Wisc.) and two state community funds for Michigan and Indiana of about $10-$15 million each.

National Equity Fund closed a $100 million national multi-investor fund (7.25% yield) in December and expects to finish closing the balance of its $50 million Homestead regional fund in March, said Joe Hagan. He said NEF will roll out a new national fund at some point in 2014 and probably four regional funds. In 2013, NEF marketed the Homestead fund, a California fund, and a so-called “I-94” fund, named for investments in properties in Chicago and other Midwest cities along Interstate 94.

Ohio Capital Corporation for Housing anticipated rolling out a new multi-investor fund by February, investing in properties in Ohio and Kentucky, of around $180-$200 million in size, said Hal Keller. The projected yield will probably be in the range of 7% to 7.25%, he said.

R4 Capital, Inc. anticipates closing the last $30 million of a $125 million national multi-investor fund in the first quarter or so, said Marc Schnitzer. The projected yield is 7.5% for investors investing $20 million or more and 7.25% for investors investing less. The firm closed $47.5 million of a California multi-investor fund (6% yield) in the fourth quarter and hopes to raise a final $5 million in the first quarter. Schnitzer expected to roll out a new $125 million national fund early this year.

RBC Capital Markets’ Tax Credit Equity Group closed a $100.3 million national multi-investor fund (7.25% IRR) in October and is currently on the street with a $37 million California multi-investor fund (5.60% yield) that is 100% specified in properties, said Craig Wagner. The California fund has investor commitments for $24 million so far, he said.

Raymond James Tax Credit Funds, Inc. is closing a $72 million California multi-investor fund that has commitments from nine investors with yields ranging from 4.50% to 5.50% depending on geography, said Steve Kropf. The company plans to launch a new $150 million national fund with an expected yield above 7% early in the second quarter.

Red Stone Equity Partners expects to launch a new $100-$150 million national multi-investor fund in the first quarter, said Ryan Sfreddo, noting the yield hasn’t yet been set.

The Richman Group closed in investors before year-end to a new national multi-investor fund (7.25% yield) that is ultimately expected to finish around $105 million, said Stephen Daley. The company plans to begin marketing a new national fund of around $200 million with a similar yield in coming weeks.

Stratford Capital Group closed a $76 million national multi-investor fund (7.5% yield) in November, and will roll out a $100 million national fund (7% yield) in the first quarter, said Ben Mottola.

WNC expects to launch a new $125 million national multi-investor fund in February, and is currently on the street with a $50 million California multi-investor fund (6% yield).