LIHTC Multi-Investor Fund Activity
By Glenn Petherick
4 min read
Boston Capital is on the street with a new national multi-investor fund expected to close in the late third quarter, said executive Jeff Goldstein. The anticipated size is around $150 million and the expected after-tax yield to investors between 7.0% and 7.2%, he said.
Boston Financial Investment Management closed an $86 million national multi-investor fund (7.25% projected yield) in June that was 100% specified in properties, according to executive Sarah Laubinger. The fund has seven investors and 16 properties in 14 states. Laubinger and Grey Voyentzie reported that the firm is out with a new $100 million national multi-investor fund (7.50% IRR) that should close before year-end.
City Real Estate Advisors, Inc. closed a roughly $80 million national multi-investor fund in May, said executive Tony Bertoldi. The fund had two classes: one for investors investing $20 million or more (7.35% yield); and a second for investors investing a smaller amount (7.05% yield). He said CREA is marketing a new national multi-investor fund targeted at $125 million of which about $50 million is circled. There are two classes: one for investors investing $25 million or more (7.5% yield), and a second for investors investing less (7.35% yield).
Enterprise Community Investment, Inc. is on the street with a $150 million national multi-investor fund that is 100% specified in properties, said executive Raoul Moore. He declined to state the projected yield. The fund was rolled out in June and is expected to close in mid-August.
Great Lakes Capital Fund is marketing a regional multi-investor fund targeted at around $100 million that should close in third quarter, said executive Marge Novak. The fund will invest in properties in Michigan, Illinois, Indiana, Minnesota, and Wisconsin and has a projected yield of 7.75% for investors investing $25 million or more and 7.5% for investors investing smaller amounts.
R4 Capital, Inc. expected an initial closing soon of $70-80 million of a roughly $125 million new national multi-investor fund and to close the balance early in the fourth quarter, said executive Marc Schnitzer. The national fund has a projected yield of 7.5% for investors investing $20 million or more and 7.25% for investors investing less. The firm is also marketing a $50 million California multi-investor fund that has a projected yield of 6%; an initial closing is expected in the late third quarter or early fourth quarter.
Raymond James Tax Credit Funds, Inc. launched a new $150 million national multi-investor fund in early June that is 100% specified in properties and expected to close in September, according to executive Steve Kropf. The fund has a projected yield of 7.25%. The firm aims to close a $65 million California multi-investor fund in late August.
RBC Capital Markets’ Tax Credit Equity Group closed a new $127 million national multi-investor fund (7.25% IRR) at the end of April that had seven investors and 19 properties, said executive Tammy Thiessen. In May, RBC closed the first tranche (5% IRR), of about $48 million with two investors, of a fund that will invest mostly in properties in the Southeast U.S. A second tranche closing before October will bring the total raised to around $80 million. RBC is also marketing a $37 million California multi-investor fund with a targeted IRR of 5.50% expected to close in August.
Red Stone Equity Partners is aiming for a mid-August closing of a new $100 million national multi-investor fund that is fully subscribed in investors and is 100% identified in 11 properties, according to executive Ryan Sfreddo. The projected IRR is 7.5% for investors investing $20 million or more and 7.25% for investors investing less. He indicated that the next national fund may be rolled out late in the fourth quarter or early in the first quarter of 2014.
Stratford Capital Group continues marketing a new national multi-investor fund (7.5% IRR) of approximately $100 million that is 80% specified in properties and expected to close in September, said executive Ben Mottola.
The Richman Group closed a roughly $166 million national multi-investor fund at the end of May that had a projected yield “north of 7 percent” for all investors but one, a CRA investor whose yield is below 5%, said executive Stephen Daley. He said the firm is also: pre-marketing a new national fund expected to exceed $100 million with a yield above 7%; is closing a $125 million multi-investor fund with a sub-5% yield investing in properties only in New York City; and soon expects to launch a California regional fund of at least $50 million with a probable yield above 5%.
WNC expects to close a new national multi-investor fund of $130 million to $135 million by the end of July, said executive Michael Gaber. The fund has two classes: one (7.45% yield) for investors investing $25 million or more, and a second (7% yield) for investors investing a smaller amount. In May, WNC closed a roughly $50 million California multi-investor fund that had a projected yield of 6.25% for investors investing $15 million or more and 5.75% for investors investing smaller amounts. Gaber expected WNC to roll out another California fund of probably $50-75 million after September 1.
