Hunt Capital Partners recently closed its first low-income housing tax credit (LIHTC) fund.
The $80 million fund featured 11 properties in eight states. Eighty percent of the properties were family developments, and 80 percent involved 9 percent LIHTCS with the remaining 20 percent involving 4 percent credits and tax-exempt bonds.
Hunt Capital, which was established at the end of last year, worked with five experienced developers on the fund.
“We knew as a new syndicator, we had to come to market with an attractive product,” said Jeff Weiss, senior vice president, investor relations. “We priced the fund to 8.15 percent yield, which was above market. Second, we also provided investors with 80 percent specificity of the developments.”
That means investors were able to review key project documents for nine of the 11 properties and not just the letters of intent.
Hunt used its own balance sheet to close on several of the projects before the fund went to investors. “Our plan has been to deliver a fund that you can see, touch, and understand,” Weiss said.
The company also recently closed its first private-label fund with an undisclosed investor and is looking to close on a second private-label fund before Thanksgiving. Marking has begun for its second multi-investor fund, which they plan to close out by year end. The fund will be between $80 million and $100 million, and priced to a 7.05 percent yield.