By Joshua Burd
The Richman Group Affordable Housing Corp. has raised $450 million in new equity financing across three institutional investor funds focused on affordable housing tax credits.
The Stamford, Connecticut-based firm, which does business in New Jersey, said the funds will each acquire, rehabilitate or newly construct more than 50 properties serving some 4,300 households. Investors in the funds include some of the nation’s leading banks and insurance companies, Richman said, although it did not identify participants by name.
“Each fund offered a unique investment opportunity to our investors,” said Stephen M. Daley, executive vice president with Richman Group, who leads its equity-raising activities. “The largest of three funds offered a diversified pool of properties located throughout the U.S. The second fund will acquire properties located in the western states and was an ideal vehicle for investors with a targeted geographic focus. The third fund will acquire properties located exclusively in Puerto Rico.
“This was Richman’s second Puerto Rico-focused fund and will provide much-needed housing for the island’s residents.”
Richman has the seventh-largest portfolio of rental apartments in the U.S., according to a news release. The properties acquired by the three funds will add to the firm’s existing portfolio of more than $13 billion of equity under management, while it has invested in nearly 1,300 properties with more than 115,000 units throughout the U.S. and its territories.
Sponsor inks financing for 4,000 affordable housing units, using $850 million in tax credits
