Red Stone Equity Partners raises record $650 million of tax equity in 2017 and surpasses $4 billion of total tax equity raised since inception

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Feb 27, 2018, 09:05 ET

NEW YORK, Feb. 27, 2018 /PRNewswire/ -- Red Stone Equity Partners, LLC ("Red Stone Equity"), a privately-owned real estate finance and investment company specializing in multifamily funds and financings, announced that it raised $650 million of tax credit equity in 2017 and has surpassed $4 billion of tax credit equity raised since the firm's inception in 2007. Red Stone Equity also expanded its Low Income Housing Tax Credit ("LIHTC") portfolio of investments from 32 to 36 states. Transactions supporting the HUD Rental Assistance Demonstration Program ("RAD") also contributed to the record-breaking year as Red Stone Equity invested in nine RAD projects. Additionally, as part of its 2017 fundraising activities, Red Stone Equity sponsored and closed Red Stone Equity - 2017 National Fund, L.P. ("2017 Fund"), a $188- million multi-investor LIHTC investment fund. The 2017 Fund is the seventh and largest Red Stone Equity multi-investor fund offering to close in the last six years.

Red Stone Equity's Founder and CEO, Eric McClelland, noted, "Red Stone Equity navigated through significant volatility in the LIHTC equity market due to the legislative uncertainty that we and the industry faced throughout the year. For the company to notch its most successful year in the midst of this uncertainty is a credit to our developer and investor partners, as well as to our tremendous team."

The $650 million of tax credit raised in 2017 was comprised of $641 million of LIHTC equity and $9 million of renewable energy tax equity. Red Stone Equity added investments in Kentucky, Minnesota, North Dakota and West Virginia, increasing its portfolio geographic coverage to 36 states, the District of Columbia and Puerto Rico. The company also invested in nine RAD deals located in North Carolina, Missouri and Tennessee, and containing a total of 1,276 units. Red Stone Equity, founded 11 years ago, now has over $4 billion of equity under management. These funds have been used, along with other project-level financing sources, to finance the construction and/or rehabilitation of 336 properties containing nearly 30,000 units of affordable housing and 473 megawatts of solar energy installations.

Some notable projects that Red Stone Equity financed during 2017 include the following:

Renascent Place, San Jose, CA – Red Stone Equity provided $20.4 million of equity to Renascent Place, a 162-unit, new construction building located in San Jose, California. The project is being developed by Charities Housing Development of Santa Clara County.

Heronview, Sterling, VA – Red Stone Equity provided $17.5 million of equity to Heronview, a four-story, 96-unit building located in Sterling, Virginia. Heronview is being developed by Flatiron Partners, LLC and will contain a mix of 18 one-bedroom, 58 two-bedroom and 20 three-bedroom units.

Five Points Phase II, Knoxville, TN – Red Stone Equity provided $9.8 million of equity to Five Points Phase II, an 84-unit, new construction affordable family development located in Knoxville, TN. The project will consist of 10 two-story garden style residential buildings containing a mix of one-, two-, three- and four-bedroom units. Five Points Phase II is being developed by Knoxville's Community Development Corporation.

Van Brodie Mill, Lawrence, MA – Red Stone Equity provided $35.7 million of equity to the Van Brodie Mill 4% and 9% projects. The projects involve adaptive re-use and historic rehabilitation of 102 units of affordable family housing. The Van Brodie projects are being developed by Trinity Financial, Inc.

Dance Theater of Harlem (DTH), Harlem, NY – Red Stone Equity provided $19.4 million of equity to DTH, a to-be-constructed seven-story building with 39 affordable housing units for families. DTH is being developed by BRP Development Corporation.

"We remain very proud of our company's involvement in the affordable housing industry. We continue to work with some of the nation's most capable affordable housing developers on some of the country's most innovative projects. We made the intentional decision to embrace RAD and we feel the renewal of the nation's public housing stock is necessary for the country and important to our business," said Rob Vest, Red Stone Equity's Managing Director, Principal and co-Head of Acquisitions.

In other company news, as of January 26, 2018, Red Stone Equity's Cleveland and San Diego offices have relocated to the following addresses:

               Red Stone Equity Partners                                          Red Stone Equity Partners
              1100 Superior Avenue, Suite 1640                              5800 Armada Drive, Suite 235
              Cleveland, OH 44114                                                   Carlsbad, CA 92008

In addition to its Cleveland and San Diego office locations, the company maintains offices in Boston, Charlotte, Chicago, New York and Los Angeles.

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. Its senior management represents more than a combined 100 years of tax credit equity syndication experience, involving the acquisition and syndication of approximately $15 billion of tax credit equity. Red Stone Equity has offices in Boston, Charlotte, Chicago, Cleveland, New York, Los Angeles and San Diego. For more information, please visit www.rsequity.com or www.linkedin.com/company/red-stone-equity-partners-llc.

SOURCE Red Stone Equity Partners, LLC