The Richman Group Closes Institutional Tax Credit Fund with $257 Million in Equity

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Jan 05, 2012, 10:00 ET

GREENWICH, Conn., Jan. 5, 2012 /PRNewswire/ -- The Richman Group Affordable Housing Corporation, the nation's leading sponsor of equity funds for affordable housing for the past five years, announced it has closed a $257 million fund, U.S.A. Institutional Tax Credit Fund LXXXVII L.P. Fund 87 will include a diversified portfolio of 32 properties located in 13 states. Ten institutional investors, representing many leading insurance and banking institutions contributed the $257 million in equity for the fund.

Richman is the eight largest owner of affordable and market rate rental property in the U.S. The properties acquired by Fund 87 will provide high-quality affordable housing for family, senior and special needs tenants and will add 2,241 units to Richman's portfolio which exceeds 113,000 units.

According to Stephen M. Daley, executive vice president of Richman, "Fund 87 was our second multi-investor offering in 2011 and provided investors with a diversified portfolio of properties in strong markets throughout the U.S. More than 80% of the properties in the fund will be sponsored by developers whose other properties were acquired by funds previously sponsored by our firm. In addition to our multi-investor fund offerings, Richman had several proprietary fund programs which closed throughout 2011. Investors continue to be attracted to Richman funds because of the company's lengthy experience in the affordable housing industry, its conservative underwriting and our track record of delivering results to our investors."

In addition to being the nation's pre-eminent sponsor of affordable housing tax credit funds, Richman is also a leading affordable housing developer, asset and property manager and, more recently, mortgage lender. Richman and its affiliates have developed more than 14,000 residential units, provide asset management services to nearly 100 public, private and institutional investment funds, which own approximately 115,000 housing units, and have capital under management approaching $9 billion.

www.therichmangroup.com

SOURCE The Richman Group