Greystone closes $137M affordable housing fund, tops $240M in first year
What's the deal? Greystone Real Estate Capital has closed Greystone Affordable Housing Fund II LP, a $137 million multi-investor Low-Income Housing Tax Credit (LIHTC) fund. The fund will back the development and preservation of about 1,960 affordable housing units across 20 properties in nine states.
Who's backing it? Fund II drew eight institutional LIHTC investors — five new relationships and three returning from the firm's first fund. Roughly 84% of the equity supports projects from repeat developers.
Why now? The close follows Greystone's inaugural fund, completed in August 2025, and brings total multi-investor equity to more than $240 million in under 12 months. The firm, a subsidiary of Greystone Select Incorporated, says it has established 13 new LIHTC institutional investor relationships across its multi-investor and proprietary offerings.
By the numbers: The portfolio spans 11 LIHTC developments, split 60% new construction and 40% rehabilitation, including a 10-property Rural Development portfolio. Some 80% of the properties carry project-based rental subsidies, and residents sit at an average affordability level of 56% of Area Median Income.
What's the endgame? Greystone projects the developments will create about 2,700 jobs, generate an estimated $300 million in wages and business revenue, and produce roughly $111 million in tax revenue.
"In less than a year, we have closed on more than $240 million of multi-investor fund equity," said Todd Jones, chief investment officer at Greystone Real Estate Capital.
The signal: A fast second close and repeat institutional backers point to steady investor appetite for tax-advantaged affordable housing, even as the firm leans on established developer relationships to manage execution risk.
Read more: StreetInsider
Image credit: Phillip Pessar
