By Joshua Burd
An investment firm has closed financing for $850 million in affordable housing tax credit properties, doing so through a trio of institutional funds.
The Greenwich, Connecticut-based sponsor, The Richman Group Affordable Housing Corp., said the funds will provide more than $400 million in equity for the acquisition, rehabilitation or new construction of more than 50 properties throughout the United States. Institutional investors in the funds included some of the nation’s leading banks and insurance companies.
The Richman Group has developments within New Jersey, although the firm did not disclose if any of the three funds will be used in the Garden State.
“Each fund offered a unique investment opportunity,” said Stephen M. Daley, an executive vice president with Richman, who leads its equity raising activities. “The largest of three funds offered a diversified pool of properties located throughout the country. The second fund will acquire properties located specifically in western U.S. states appealing to investors with targeted geographic needs.
“The third fund will provide financing to construct a 278-unit permanent supportive housing high-rise property to address the homeless housing crisis in downtown Los Angeles. The project will transform the existing neighborhood and include a number of infrastructure improvements to provide accessibility to the greater downtown area.”
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 provide affordable housing for seniors, families and special needs tenants and will add more than 4,000 units to Richman’s existing portfolio, which exceeds 115,000 homes.