CREA completed the first half of 2018 with several fund closings. The low-income housing tax credit syndicator reported closing its 19th multi-investor fund, CREA Corporate Tax Credit Fund 61, LLC (Fund 61). Additionally, CREA closed on three new proprietary funds and CREA Corporate Tax Credit Fund 58, a California state fund, in the first six months of 2018.
“In the first quarter of 2018, we were working through the change in the tax code and investor considerations,” said Jeff Whiting, president and CEO. “As the year has progressed, we have seen a stabilization in the market. As such, we expect to have our largest year yet as an organization in terms of equity raised and closed.”
Fund 61 raised a total of $156.6 million and closed at the end of June. It is comprised of eight investors, including one new relationship. Fund 61 is fully specified with 21 properties, spanning 15 states. Fund 58 closed in March with $86.5 million of total equity raised, which includes four new investors. The fund was fully specified, and more than half of the lower-tier deals were closed at the time of fund closing.
In addition to the multi-investor funds, CREA officials said they advanced their overall strategy of diversification in its investor base by adding three new proprietary funds, which have been the core business since inception. Proprietary funds represent about half of CREA’s total equity raised.
“After the first six months of 2018, I think we are beginning to see the new normal in our business,” said Tony Bertoldi, executive vice president, syndicator and investor relations. “Demand and pricing are beginning to stabilize, and deals are getting done. We are very pleased with our investor and fund activity in the first six months but still have a lot of work to do before the end of the year.”
