ORIX Corp., a prominent Japanese financial services firm, has acquired Boston Financial Investment Management, a longtime low-income housing tax credit (LIHTC) syndicator.

It will be the second LIHTC syndicator to change hands this year. Omni Holding Co. recently acquired City Real Estate Advisors.

Several industry leaders said a third deal involving First Sterling is also expected.

ORIX has a U.S. subsidiary based in Dallas. ORIX USA Corp. owns RED Capital Group, which provides capital for affordable, multifamily, and senior housing and health-care real estate.

The acquisition of Boston Financial would add to the firm’s affordable housing business. Boston Financial raised approximately $560 million in LIHTC capital and acquired 97 properties last year, according to an Affordable Housing Finance survey. The firm has a long history syndicating housing credits. In 2009, Boston Financial, formerly MMA Financial, was acquired by JEN Partners and Real Estate Capital Partners.

“This acquisition is a natural extension of ORIX USA’s existing business and affirms our commitment to the affordable housing market,” said Hideto Nishitani, ORIX USA’s chairman, president, and CEO, in a statement. “ORIX USA is already active in the affordable housing industry through our investment in RED Capital Group and has established expertise in underwriting, construction management and asset management through our Risk Management and Real Estate groups. With its seasoned management team, Boston Financial is a national leader in the tax credit industry having raised over $10 billion of low-income housing and historic tax credit equity investments in over 2,200 properties. Combining our real estate and affordable housing expertise and deep capital resources with Boston Financial’s track record will strengthen Boston Financial’s position as one of the strongest independent syndicators in the market.”

Rumors of the ORIX deal have been circulating for several weeks, and Reuters recently reported that the company “paid several hundred million dollars” to buy Boston Financial.

Boston Financial will be a separate subsidiary of ORIX USA with Ken Cutillo continuing to serve as CEO.

"Our investors and developer partners will greatly benefit from ORIX USA’s scale, innovative capital solutions, and financial strength," he said. "We’re thrilled with the confidence that ORIX USA has shown in our platform and employees, and are poised for a new chapter in our company’s history, focused on the growth of our production effort and product expansion.”

The acquisition was completed on July 8.

Editor's Note: The story was updated on July 19 to include additional details.