NEW YORK—Red Stone Partners announced the launch of a $250 million investment fund to acquire fixed-rate tax-exempt multifamily housing bonds and has closed more than $50 million through its direct bond purchase structure.
The fund was established to purchase newly issued tax-exempt bonds used to finance the acquisition and rehabilitation of affordable multifamily housing as well as to purchase and restructure existing tax-exempt bonds on stabilized properties. The program is available for bonds issued to finance 4 percent low-income housing tax credit (LIHTC) properties and nonprofit/501(c)3 multifamily bonds.
“We believe our direct bond purchase program will provide an attractive alternative to owners and developers of bond-financed multifamily housing in a market with limited financing options,” said Cody Langeness, vice president.
RedStone reported recently closing on two tax-exempt bond transactions. One involved a $16.25 million direct purchase of unenhanced fixed-rate bonds financing a 157-unit LIHTC property in San Jose, and the other was a $13.5 million direct purchase of unenhanced fixed-rate bonds financing a 250-unit LIHTC property in Houston that was completed and stabilized in 2008.