Red Stone Equity Partners LLC, a privately-owned real estate finance and investment company specializing in affordable multifamily residential funds and financings, announced the closing of Red Stone Equity – Fund 113 Limited Partnership (“Fund 113”), a $263.2 million multi-investor Low Income Housing Tax Credit (“LIHTC”) equity investment fund. Fund 113 is the 18th and largest multi-investor national LIHTC fund offering to close since the Company’s inception.
LIHTC fund offering includes investments from 10 institutional investors, eight of which are repeat Red Stone Equity LPs and two of which are first-time Red Stone Equity LPs.
Fund 113’s proceeds will be used, along with other project-level financing sources, to finance the construction and/or rehabilitation of 1,672 units of affordable rental housing contained within 19 properties and located across 11 different states.
In partnership with both for-profit and non-profit development sponsors, Red Stone Equity structured Fund 113 to invest in a variety of affordable housing properties that will serve a diverse range of tenants 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 re-use developments, which include the transformation of an office building, two former school buildings, and a decommissioned historic armory. Eight of the properties in Fund 113 will 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).
“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 wellbeing of our people and the communities we serve.”
With the closing of Fund 113, Red Stone Equity has now raised more than $1.3 billion of LIHTC equity capital in calendar year 2024. As part of this activity, the Company successfully closed Red Stone Equity – Fund 111 Limited Partnership (“Fund 111”) this past summer.
Fund 111 is a $256.3 million multi-investor LIHTC investment fund with investments from 10 different institutional investors, eight of which are repeat Red Stone Equity fund LPs and two of which are new to the Company. Fund 111 and Fund 113 are the Company’s largest multi-investor LIHTC funds closed to date and together they will finance the construction and/or rehabilitation of 38 affordable housing communities containing a total of 3,179 units of sorely-needed affordable rental housing.
“Our multi-investor LIHTC fund platform continues to be an important part of our business strategy, as it not only provides our LPs with diversification benefits, but also brings together like-minded co-investors to invest in something that is so critically needed—high-quality affordable housing,” said Stephanie Kinsman, Red Stone Equity’s Managing Director of Investor Relations.
“The successful closings of Fund 111 and Fund 113 are a testament to the power of public-private partnerships, and highlight the importance of the LIHTC Fund Offerings program in being able to serve so many different resident constituents as we continue to confront and contain the affordable housing crisis gripping our nation.”
Since 2007, Red Stone Equity has raised over $11 billion of tax credit equity to finance the construction and/or rehabilitation of more than 750 affordable housing communities containing more than 65,000 affordable rental homes across 48 states, territories, and districts, as well as 932 megawatts of stand-alone solar energy installations.
The Company continues to prioritize best-in-class service for its investor and developer partners while creating homes for those in need and increasing community engagement through its initiatives in philanthropy, ESG, and diversity, equity, and inclusion.
Red Stone Equity Partners LLC (“Red Stone Equity” or the “Company”) is a leading real estate investment firm specializing in the syndication of Low-Income Housing Tax Credits and Renewable Energy Tax Credits to facilitate the development of affordable multifamily rental housing and renewable energy projects, respectively. Red Stone Equity builds upon long-lasting relationships with investors and developers as it acquires, structures, and provides long-term asset management services to its institutional clients.
Since inception, Red Stone Equity has raised over $11 billion of tax credit equity. These LIHTC Fund Offerings have been used to finance the construction and/or rehabilitation of more than 65,000 units of affordable housing and 932 megawatts of stand-alone solar energy installations located 48 states, Washington, D.C. and Puerto Rico. Red Stone Equity has offices in Boston, Charlotte, Chicago, Miami, New York, and San Diego.
