Greystone Closes $137M Affordable Housing Fund for 2,000 Units
Greystone Real Estate Capital has closed Affordable Housing Fund II LP (AHF II) at $137 million. The pool included a total of eight institutional investors, with three of them repeat ones.
AHF II aims to deliver on preserving and developing 1,960 affordable housing units across 20 properties, with 11 eligible for low-income housing tax credits. Also, 80 percent of the properties qualify for rent subsidies, with the portfolio serving, on average, 56 percent of the area's median income.
The portfolio, which includes 40 percent rehabilitation projects and 60 percent ground-up construction developments, is located in nine states. Exact regions are unclear, but one of them includes a 10-property rural development.
In addition to affordable units, the fund is expected to provide a boost to local economies. Greystone Real Estate anticipates roughly $111 million in tax revenue and approximately 2,700 in job creation, generating roughly $300 million in business revenue and wages.
"The closing of Fund II reflects both the market's confidence in our affordable housing platform and Greystone's longstanding commitment to creating and preserving affordable housing nationwide," Stephen Rosenberg, CEO of Greystone, said in a statement.
"The Greystone Real Estate Capital team has built a remarkable platform through disciplined execution, strong LIHTC investor and developer relationships, and an unwavering commitment to client service and innovation. We believe this is only the beginning, and we remain committed to expanding our impact by delivering innovative capital solutions that help address the growing need for affordable housing across the country."
With the capital raising today, Greystone Real Estate has now closed more than $240 million in investor equity in less than a year. Over that period, the affordable housing syndicator for parent Greystone has formed 13 new relationships with LIHTC institutional investors.
Importantly, affordable housing developers will be getting a boost under the 21st Century ROAD to Housing Act. Michael Tillman, chief executive officer and chief investment officer of PTM Partners, praised the new law's provisions that will provide additional financing opportunities for affordable and workforce housing in underserved neighborhoods. Plus, the act will streamline projects and reviews.
Source: GlobeSt/ALM