Red Stone Equity Partners Closes $207-million LIHTC Investment Fund, Largest in Company History
NEW YORK, May 19, 2021 /PRNewswire/ — Red Stone Equity Partners LLC (“Red Stone Equity” or the “Company”), a privately-owned real estate finance and investment company specializing in affordable multifamily residential funds and financings, announced the closing of Red Stone Equity – Fund 84 Limited Partnership (“Fund 84”), a $207-million multi-investor Low Income Housing Tax Credit (“LIHTC”) investment fund. Fund 84 is the 18th and largest Red Stone Equity multi-investor fund offering to close since the Company’s inception and includes investments from 12 different institutional investors, 11 of which are repeat Red Stone Equity investors and one of which is a first-time Red Stone Equity investor. Fund 84’s proceeds will be used, along with other project-level financing sources, to finance the construction and/or rehabilitation more than 1,600 units of affordable rental housing contained within 23 properties located in 11 different states. With the closing of the Fund 84, Red Stone Equity has now raised more than $340 million of LIHTC equity capital thus far in 2021. The timing of its largest fundraise in Company history coincides with the acute and growing need for affordable housing that has only been amplified by the COVID-19 pandemic.
“We are pleased to announce the closing of our largest multi-investor LIHTC fund to date, which comes at a critical time as our nation confronts a growing affordable housing crisis,” said Ryan P. Sfreddo, President of Red Stone Equity. “Prior to the onset of COVID-19, more than one in four renter households in the U.S. – roughly 12 million households – were spending more than half of their income on rent, leaving far too little for other necessities like food, medical care, and transportation. COVID-19 has only exacerbated this crisis as it has had a disproportionate impact on low- and moderate-income households and on communities of color. We are proud to have executed on the Fund 84 closing for our investor and developer clients, but more importantly for the thousands of hardworking families, veterans, people with special needs, teachers, nurses, firefighters, police officers, and seniors it will help to house.”
Red Stone Equity has established itself as a leading real estate investment firm focusing on the syndication of LIHTCs and Renewable Energy Tax Credits, with a national presence and offices in Boston, Charlotte, Chicago, Cleveland, New York, Los Angeles and San Diego. With over $6.7 billion of tax equity raised and under management, Red Stone Equity has financed the development of nearly 50,000 units of affordable housing across more than 532 properties located in 44 states, the District of Columbia and Puerto Rico.
About Red Stone Equity Partners LLC
Red Stone Equity Partners LLC (“Red Stone Equity”) is a leading real estate investment firm specializing in the syndication of Low-Income Housing Tax Credits and Renewable Energy Tax Credits to facilitate the development of affordable multifamily rental housing and renewable energy projects, respectively. Red Stone Equity builds upon long-lasting relationships with investors and developers as it acquires, structures, and provides long-term asset management services to its institutional clients. Its senior management represents more than a combined 100 years of tax credit equity syndication experience, involving the acquisition and syndication of approximately $15 billion of tax credit equity. Since inception, Red Stone Equity has raised over $6.7 billion of tax credit equity. These funds have been used to finance the construction and/or rehabilitation of nearly 50,000 units of affordable housing in 44 states, Washington, D.C. and Puerto Rico. Red Stone Equity has offices in Boston, Charlotte, Chicago, Cleveland, New York, and San Diego. For more information, please visit www.rsequity.com or www.linkedin.com/company/red-stone-equity-partners-llc.
Red Stone Equity Partners Records Strong Year Despite Challenges Presented by Global Pandemic
NEW YORK, Jan. 27, 2021 /PRNewswire/ — Red Stone Equity Partners LLC (“Red Stone Equity” or the “Company”), a privately-owned real estate finance and investment company specializing in affordable multifamily residential funds and financings, announced today that notwithstanding the many challenges experienced throughout the past year, 2020 marked a strong and successful year of fundraising and investment activity for the Company. Among other notable accomplishments in 2020, Red Stone Equity closed its eleventh national multi-investor Low Income Housing Tax Credit (“LIHTC”) fund and third California-only LIHTC fund offering, helping the Company end the year with $6.5 billion in tax credit equity raised since the firm’s inception.
Red Stone Equity raised $895 million of tax credit equity in 2020, comprised of $779 million of affordable housing tax equity and $116 million of renewable energy tax equity. Within its affordable housing vertical, Company-sponsored investment funds invested in 73 LIHTC properties containing more than 6,300 units of affordable rental housing located in 26 different states. Since the firm’s inception in 2007, Red Stone Equity-sponsored investment funds have helped finance the construction and/or rehabilitation of 519 LIHTC properties containing more than 45,000 units of affordable rental housing and 892 megawatts of solar energy installations.
As part of its 2020 fundraising and investment activities, Red Stone Equity sponsored two different multi-investor LIHTC funds, Red Stone Equity – Fund 78 Limited Partnership (“Fund 78”) and Red Stone Equity – 2020 CA Regional Fund, L.P. (“CA Fund”). Fund 78 is the eleventh multi-investor national fund raised by the company and included investments from eight different investors, six of which are repeat Red Stone Equity fund investors and two of which are new to the Company. The CA Fund marks the third and largest California-specific multi-investor fund offering for the company in as many years and includes investments from six different investors. Collectively, these two funds closed on $232 million in investor subscription commitments to finance the construction and/or rehabilitation of 26 projects containing 1,776 units of affordable rental housing across the country.
Red Stone Equity’s President, Ryan Sfreddo, noted, “Red Stone Equity successfully navigated the choppy waters we confronted throughout 2020. For the Company to achieve the levels of production and portfolio performance we did while in the midst of a global pandemic is a credit to our developer and investor partners, as well as to our talented and resilient team.”
In 2020, the Company also focused on furthering the firm’s racial and social justice efforts in announcing in late December a three-year commitment to partner with organizations at the forefront of these issues and located in cities in which the Company has an employment presence. Red Stone Equity’s full financial commitment to this initiative will total $180,000 and the Company—through its Red Stone Responds initiative—plans to engage with the selected partner organizations through their various program offerings. Since its founding in 2007, Red Stone Equity has been investing in affordable rental housing with a goal towards improving communities all across the country; however, the Company recognized the need and opportunity to do more on a local level through strategic partnerships to continue to foster change. The initiatives have been led by the Company’s Diversity and Inclusion Committee, which has also led several internal initiatives including the development of a formal diversity and inclusion statement and an evaluation of the Company’s culture and programs, with a focus on recruitment and retention efforts in these key areas. The Company’s prior efforts in this regard include hiring professionals of color at all levels, including in its partnership, and making capital investments in minority- and women-owned business enterprises (MWBEs).
“Amid the significant challenges presented by COVID and the related economic slowdown, Red Stone Equity had yet another strong year. The events of 2020 also created a national dialogue on racial and social justice. The business community across all sectors responded to this environment and Red Stone Equity continued to show leadership and announced policies and programs to supplement our longstanding commitment to diversity, equity and inclusion,” said Richard Roberts, Red Stone’s Chief Business Development Officer and Chair of Red Stone Equity’s Diversity and Inclusion Committee.
About Red Stone Equity Partners LLC
Red Stone Equity Partners LLC (“Red Stone Equity”) is a leading real estate investment firm specializing in the syndication of Low-Income Housing Tax Credits and Renewable Energy Tax Credits to facilitate the development of affordable multifamily rental housing and renewable energy projects, respectively. Red Stone Equity builds upon long-lasting relationships with investors and developers as it acquires, structures, and provides long-term asset management services to its institutional clients. Its senior management represents more than a combined 100 years of tax credit equity syndication experience, involving the acquisition and syndication of approximately $15 billion of tax credit equity. Since inception, Red Stone Equity has raised over $6.5 billion of tax credit equity. These funds have been used to finance the construction and/or rehabilitation of more than 45,000 units of affordable housing in 44 states, Washington, D.C. and Puerto Rico. Red Stone Equity has offices in Boston, Charlotte, Chicago, Cleveland, New York, and San Diego. For more information, please visit www.rsequity.com or www.linkedin.com/company/red-stone-equity-partners-llc.
SOURCE Red Stone Equity Partners, LLC