Red Stone Equity Partners Raises $1.3 Billion of Tax Equity in 2022; Surpasses $8.8B of Equity Raised and Invested since Inception

NEW YORK, Feb. 13, 2023 /PRNewswire/ -- Red Stone Equity Partners LLC ("Red Stone Equity" or the "Company"), a privately-owned real estate finance and investment company specializing in affordable multifamily residential funds and financings, announced that 2022 marked the most productive year in the Company's history as it surpassed $8.8 billion in tax credit equity raised and invested since the firm's inception in 2007. Contributing to the historic year, the Company closed two of its largest Low Income Housing Tax Credit ("LIHTC") fund offerings to date, with a $233 million multi-investor national LIHTC fund and a $137 million California-specific LIHTC fund.

Red Stone Equity raised $1.3 billion of affordable housing tax equity from 27 different LPs in 2022, comprised of nearly $900 million in proprietary LIHTC fund format and $400 million in multi-investor LIHTC fund format. Within its affordable housing vertical, Company-sponsored investment funds in 2022 invested in 84 LIHTC properties developed by 64 different developer partners and containing more than 6,600 affordable rental homes located in 23 different states and The District of Columbia. Since inception, Red Stone Equity-sponsored investment funds have financed the construction and/or rehabilitation of 672 LIHTC properties containing more than 57,000 units of affordable housing, as well as 932 megawatts of solar energy installations.

As part of its 2022 fundraising and investment activities, Red Stone Equity sponsored two of the Company's largest multi-investor LIHTC funds since inception, Red Stone Equity – Fund 95 Limited Partnership ("Fund 95") and Red Stone Equity – 2022 CA Regional Fund, L.P. ("CA Fund"). Fund 95 is the fourteenth and largest multi-investor national fund raised by the Company and includes investments from nine LPs, six of which are repeat Red Stone Equity fund investors and three of which are new to the Company. The CA Fund marks the company's fifth and largest California-specific multi-investor fund offering, and includes investments from six LPs, all of which are repeat Red Stone Equity fund investors. Collectively, these two funds will finance the construction and/or rehabilitation of 33 identified projects containing 2,275 units of affordable rental housing. 

Red Stone Equity's Managing Director of Investor Relations, Stephanie Kinsman, noted, "The affordable housing industry faced some headwinds in 2022 with rising construction costs, rising interest rates, and general inflationary pressures on operating expenses, all of which made projects much more difficult to pencil. Despite these challenges, Red Stone Equity posted a record year in terms of both equity raised and the number of closed transactions. I am proud of the drive, teamwork, and creativity exhibited by all of our stakeholders, both internal and external, to do our collective part to alleviate the affordable housing crisis being felt across the nation."

Contributing to its record-breaking year, Red Stone Equity closed its largest, multi-phased affordable housing development in its sixteen-year history with the closing of Poppy Grove, a to-be-constructed 387-unit affordable housing community located in Elk Grove, California. Poppy Grove is to be developed by a joint venture of two California-based African-American developers who benefited from the State of California's innovative LIHTC BIPOC set aside initiative. The project is notable not only because of the significant number of units it will create, but also because it empowers and supports the inclusion of diverse professionals in the affordable housing industry. Red Stone Equity's $127 million tax credit equity investment reinforces the Company's long-standing commitment to DE&I initiatives. 

"2022 represents one of the most successful years in Red Stone Equity's history," said Richard Roberts, Principal and Chief Business Development Officer of Red Stone Equity. "Not only did we surpass our equity volume goals, but I am proud to report that we continued our longstanding commitment to diversity, equity and inclusion with efforts inside our company and within our industry. We also established a solid foundation for future Environmental, Social and Governance (ESG) initiatives."

About Red Stone Equity Partners LLC

Red Stone Equity Partners LLC ("Red Stone Equity") 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. Red Stone Equity senior management features a diverse set of professionals with extensive experience in all aspects of real estate, affordable housing, and renewable energy investment. Since its inception, Red Stone Equity has raised nearly $9 billion of tax credit equity. These funds have been used to finance the construction and/or rehabilitation of more than 57,000 units of affordable housing in 46 states, Washington, D.C., and Puerto Rico. Red Stone Equity has offices in Boston, Charlotte, Chicago, Cleveland, New York, and San Diego. For more information, please visit us at rsequity.com and on LinkedIn or Twitter.

SOURCE Red Stone Equity Partners, LLC