Low-Income Housing Tax Credit Multi-Investor Fund Activity

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Boston Capital anticipates closing a $125 million national multi-investor fund by the end of the year that has a base after-tax yield to investors of 6.75%, according to Jeff Goldstein.

Boston Financial Investment Management expects to close a national multi-investor fund on November 20 with an anticipated final size of $185 million, said Todd Jones. The fund offers tiered pricing for investors with yields ranging from 6.75% for a purely economic investment to 6% for a 100% CRA investment. More than 80% of the properties for the fund are specified.

City Real Estate Advisors, Inc. is closing the second tranche of a $120.3 million national fund, and in September closed a Hawaiian fund that raised just under $20 million from two investors, according to Tony Bertoldi. The latter fund had both federal and state housing tax credits from three properties in Hawaii. In September, CREA launched a national multi-investor fund that is fully circled to $130 million by five investors. Projected yields will be 6.75% for investors contributing over $20 million and 6.50% for smaller investments. December 18th is the targeted closing date.

Enterprise Community Investment, Inc. closed a $271 million multi-investor national fund in July that had regionally priced CRA pools offering projected yields ranging from 5% to 7.25%. Enterprise will probably roll out its next national fund in March 2015, said Kari Downes.

First Sterling closed several tranches of a national multi-investor during 2014, raising a total $100 million, according to Victor Sostar. Yields ranged from 7.10% to 7.40%, depending on investment size and closing date.

Great Lakes Capital Fund has three multi-investor funds in process, according to Marge Novak. A regional fund, scheduled to close by the end of October, covers Illinois, Indiana, Michigan, Minnesota, Wisconsin, and Upstate New York. It has a targeted size of $138.5 million, and a projected yield of 7.26% for investors contributing $25 million or more and 7% for smaller investments. Great Lakes Capital expects to close two state community funds, for Indiana ($20 million) and Michigan ($12 million) by the end of November. Each has a projected yield of 6.81%.

National Equity Fund held final closings in August for a California multi-investor fund and in September for a Northeast regional multi-investor fund, according to Joe Hagan. The California fund raised $57 million in gross equity and had a targeted yield of 5.30%, while the Northeast fund raised $45.275 million and had a targeted yield of 5.75%. NEF is currently marketing its first national fund that offers tiered pricing. The $125 million fund, expected to have an initial closing in November, will provide varying yields to investors, depending on the markets in which they claim CRA credit. For national pool investors, the projected yield is 6.80%. In addition, NEF expected an initial closing by the end of October for a Chicago regional fund of up to $125 million, again with tiered pricing. The national and Chicago funds are 100% specified in properties.

Ohio Capital Corporation for Housing expects to launch its 2015 regional multi-investor fund by the end of 2014 with a closing next spring, according to Hal Keller. The size of the fund could be in the $200 million to $225 million range. The yield hasn’t yet been determined. In May, OCCH closed its 2014 regional fund with $193.2 million from 15 investors, investing in projects in Ohio, Kentucky, and West Virginia.

R4 Capital expected in late November or early December to close in the final investor in a $125 million national multi-investor fund that has projected yields of 7.5% for investors contributing $20 million or more and 7.25% for smaller investments, according to Marc Schnitzer. He anticipated that the company will launch its next national multi-investor fund in the first quarter of 2015.

RBC Capital Markets’ Tax Credit Equity Group anticipated an October closing of a roughly $119.7 million national multi-investor fund that will invest in 18 properties in 13 states containing 1,454 units of housing, according to Tammy Thiessen. The fund is structured with three yield tiers: 6.50% Quarterly IRR Base Tier; 6% QIRR Investor Premium Level 2 for allocation of CRA in certain markets; and 5.25% QIRR Investor Premium Level 1 for allocation of CRA in certain markets.

Raymond James Tax Credit Funds, Inc. plans to launch a $150 million national multi-investor fund by year-end that will offer a market yield, according to Steve Kropf.

Red Stone Equity Partners closed a $131.3 million national multi-investor fund on September 15 that had three new investors to Red Stone and five repeat investors, said Ryan Sfreddo. The fund, which will invest in 19 properties in 12 states, has four investment classes with projected yields ranging from 6% to 7%. The company expects to roll out its next national fund in the first quarter of 2015.

The Richman Group is targeting November closings for a $254 million national multi-investor fund and an $81 million New York City regional multi-investor fund, according to Stephen Daley. The projected yields are 6.75% for the national fund and 4.25% for the New York fund.

Stratford Capital Group is in the process of closing a national multi-investor fund that has a targeted yield of 7.15% and an expected final size between $85 million and $95 million, said Ben Mottola.

WNC closed a $120 million national multi-investor fund in June with a projected yield of 7%-7.25%, depending on investment size, according to Michael Gaber. The company will launch a $125 million national fund with a projected yield in the low- to mid-6% range, and roll out a new $50 million California regional fund (yield not yet determined). In June, WNC closed a $61.5 million California fund with a yield between 6% and 7%, depending on investment size.