Red Stone Equity Partners recently announced the closing of a $263.2 million low-income housing tax credit (LIHTC) fund.
Red Stone Equity—Fund 113 is the firm’s largest multi-investor national LIHTC fund to close to date. It includes investments from 10 institutional investors, eight of which are repeat partners and two first-time Red Stone Equity limited partners.
Fund 113's proceeds will be used, along with other project-level financing sources, to support the construction and/or rehabilitation of 1,672 units of affordable rental housing within 19 properties in 11 states.
In partnership with for-profit and nonprofit development sponsors, Red Stone Equity structured Fund 113 to invest in a variety of affordable housing properties that will serve a diverse range of residents and income levels, providing high-quality housing for families, seniors, and special-needs populations such as veterans, individuals with disabilities, and those struggling with homelessness or substance abuse.
Fund 113 will invest in 13 ground-up new construction projects, two renovation projects, and four adaptive-reuse developments, which include the transformation of an office building, two former school buildings, and a decommissioned historic armory. Eight properties are poised to qualify for federal energy tax credits due to their renewable energy and/or energy-efficiency features, and nine properties will be developed by Minority or Women-owned Business Enterprises (M/WBEs), according to the firm.
With the closing of Fund 113, Red Stone Equity raised more than $1.3 billion of LIHTC equity capital in 2024.
"We are very pleased to announce the closing of our largest multi-investor LIHTC fund vehicle to date and which will bring high-quality affordable housing to more than 1,600 households in 19 different communities across our nation," said Ryan P. Sfreddo, CEO of Red Stone Equity. "I want to offer my sincere thanks to our investor partners, development partners, and valued employees, all of whom worked together to make this possible. Here at Red Stone Equity, our culture of collaboration, creativity, hard work, and perseverance have helped us grow from a startup 17 years ago into one of the largest and best-in-class tax equity fund sponsors of today. As we have grown, we remain acutely aware of what sets us apart from our peers—doing the very best for our clients and focusing the well-being of our people and the communities we serve."
