Low-Income Housing Tax Credit Multi-Investor Fund Activity

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Boston Capital planned to launch a new national multi-investor fund in July with a projected after-tax IRR to investors of 6.75%, according to Tom Pereira. The fund is expected to close in October.

Boston Financial Investment Management recently closed a $166 million national fund with seven investors, offering projected yields ranging from 5% to 7.1%, said Sarah Laubinger. The company expects to start marketing its next national multi-investor fund, of comparable size, in August.

City Real Estate Advisors, Inc. closed a $113 million national multi-investor fund on June 23. According to Tony Bertoldi, the fund had four investment classes with different projected yields: Super Premium Class (7.25% yield); Class A (6.9%); CRA California Class (6.6%); and CRA Florida Class (6%). Super Premium Class was for investors contributing $40 million or more. The California and Florida classes were reserved for investors taking a CRA letter for a specific investment in California or Florida. Bertoldi anticipated that the company will roll out its next national multi-investor fund, also with tiered pricing, around August 1.

Enterprise Community Investment, Inc. scheduled a new $271 million multi-investor fund to close on July 11, according to Amy Dickerson. The offering is a national fund with regionally priced CRA pools offering projected yields ranging from 5% to 7.25%, with projects in New Jersey, Pacific Northwest Metro, California Metro, Washington, D.C., Pennsylvania, Ohio, Chicago, Massachusetts, and Maryland.

National Equity Fund completed in July a second closing of Homestead Equity Fund XI, a Pacific Northwest multi-investor fund sized at $94 million, according to Joe Hagan. NEF is currently marketing regional funds focused on California (expected size $57 million), the Northeast ($50 million), Florida ($50 million), and the Chicago area ($70 million), and is in discussions with prospective investors on a new national multi-investor fund that will be as large as $150 million.

Ohio Capital Corporation for Housing recently closed a more than $193 million regional multi-investor fund that will help finance 39 projects in Ohio and Kentucky, containing over 2,700 housing units.

R4 Capital, Inc. recently closed the last equity into a national multi-investor fund that finished up at just over $125 million, according to Marc Schnitzer. The fund’s projected yield is 7.5% for investments of $20 million or more and 7.25% for investors contributing less. The same projected yield levels are being offered on a new $125 million national multi-investor fund launched in late June that is expected to close in the fourth quarter. Earlier, the company rolled out a $150 million national fund that has 24 deals and is being purchased by one investor, said Schnitzer.

RBC Capital Markets’ Tax Credit Equity Group closed a $100 million national multi-investor fund on June 18 that has a projected IRR to investors of 7%, said Tammy Thiessen. The company is putting together a new national multi-investor fund with a targeted size of $100 million to $125 million.

Raymond James Tax Credit Funds, Inc. plans to launch a new $150 million national multi-investor fund in the third quarter, said Steve Kropf.

Red Stone Equity Partners has fully circled a new, roughly $130 million national multi-investor fund with eight prospective investors and is aiming to do a simultaneous closing of all of them in August, said Ryan Sfreddo. The fund has three investment classes with projected yields of 6%, 6.5%, and 7%. The company’s goal is to roll out its next national fund either near year-end or in the first quarter of 2015.

The Richman Group held a third and final closing in June for a $140 million national multi-investor fund that provides investors yields ranging from 5% to 7.25%, depending upon CRA allocation, said Stephen Daley. The company is marketing a new national fund of about $200 million with a targeted yield of 6.75%, though the yield may be lower for investors desiring CRA on certain properties. In addition, the firm is in the market with a $75 million to $100 million New York City CRA fund with a targeted yield of 4.25%.

Stratford Capital Group is marketing a new national multi-investor fund with an anticipated size of $100 million to $120 million and an expected yield of 7.15%, said Ben Mottola.

WNC anticipated closing by the end of July a $120 million national multi-investor fund with 23 properties, offering projected yields to investors between 7%-7.25%, said Michael Gaber.