Low-Income Housing Tax Credit Multi-Investor Fund Activity

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Boston Capital continues marketing a national multi-investor fund expected to have closings in December and January, said executive Jeff Goldstein. The anticipated final size is $150 million, the projected after-tax yield to investors is 7.25%, and the fund is fully specified with 37 properties in 16 states.

 

Boston Financial Investment Management plans to close a new national multi-investor fund on November 29, according to executive Sarah Laubinger. The fund, which has a projected yield of 7.5%, has been increased in size to $145 million, has seven investors, and is fully specified with 23 properties in 15 states, she said.

 

City Real Estate Advisors, Inc. closed the second and final tranche of a national multi-investor fund in August, said executive Tony Bertoldi. The fund raised about $80 million in total equity and has 18 properties, nine investors, and two investment classes: one for investors investing $25 million or more (7.5% yield); and a second for investors investing a smaller amount (7.25% yield). Bertoldi said CREA expects to close a new national multi-investor fund in November that is fully circled to $135 million with five investors. It has four investment classes: Premium (7.6%); Class A (7.35%); California Class (6.4%); and New York Class (6.15%).

 

Enterprise Community Investment, Inc. closed a $143.9 million national multi-investor fund in August that has projected yields to investors ranging from 5.75% to 7.25% based on the CRA pool chosen, according to executive Raoul Moore. He said Enterprise has rolled out a new $80 million national fund targeted for economic investors – yield to be determined – that is expected to close next April.

 

Great Lakes Capital Fund closed a $109 million regional multi-investor fund on September 30 that has seven investors and will provide capital for 17 properties with 1,040 units located in Illinois, Indiana, Michigan, and Wisconsin, said executive Marge Novak. The projected yield is 7.75% for investors investing $25 million or more and 7.5% for investors investing less.

 

National Equity Fund closed two regional multi-investor funds in May and expects to close a $98.8 million national multi-investor fund (7.25% IRR) in November, said executive Joe Hagan. The regional funds were Homestead Equity Fund X ($25.6 million, 5.25% IRR), funding properties in the Northwest; and California Equity Fund 2013 ($39.6 million, 5.35% IRR), funding properties in California.

 

R4 Capital, Inc. had an initial closing of $87.5 million in its current national multi-investor fund in September and anticipates closing the balance of the $125 million fund in the fourth quarter, said executive Marc Schnitzer. The fund has a projected yield of 7.5% for investors investing $20 million or more and 7.25% for investors investing less. Schnitzer anticipated rolling out a new national multi-investor fund before year-end. He expected an initial closing in October (about $43 million) and a second and final closing in November of a California multi-investor fund (6% yield) likely to finish around $52.5 million.

 

Raymond James Tax Credit Funds, Inc. closed a new $195 million national fund (7.25% yield) that had seven investors on September 12, according to executive Steve Kropf. The fund has a projected yield of 7.25% and will provide capital for 42 projects with 2,202 units in 32 states. Kropf said the firm plans to launch a new $150 million national multi-investor fund (expected yield around 7.25%) in the fourth quarter.

 

Red Stone Equity Partners closed a $98.37 million national multi-investor fund on August 30 that has six investors, three of which were repeat investors and three of which are new to Red Stone, according to executive Ryan Sfreddo. The fund will finance 11 properties and has a projected after-tax IRR of 7.5% for investors investing $20 million or more and 7.25% for investors investing less.

 

The Richman Group closed a $125 million New York City multi-investor fund (4.5% yield) in June and is on the street with two new multi-investor funds, said executive Stephen Daley. These include a national multi-investor fund of $100-150 million (projected yield of 7.25%)

targeted for a year-end close, and a California multi-investor fund estimated at $50 million with a projected yield of 5.5%.

 

Stratford Capital Group expected an initial closing at the end of October of a new national multi-investor fund that has a projected yield of 7.5% and a current size of $80 million that is likely to increase to $100 million by year end, said executive Ben Mottola.

 

WNC on August 26 announced the closing of a $150.5 million national multi-investor fund – the second largest fund in the company’s history – that will fund 24 properties with more than 2,100 units in 18 states.