Key Takeaways
- • Greystone Real Estate Capital closed a $137 million second LIHTC fund (Fund II) in 2026, bringing total multi-investor equity raised to over $240 million since the firm's inception in 2024.
- • Fund II supports development and preservation of approximately 1,960 affordable housing units across 20 properties in nine states, with a 60/40 split between new construction and rehabilitation projects.
- • Portfolio composition features 80% of properties backed by project-based rental subsidies for revenue stability, serving residents at an average of 56% area median income, with 84% of equity directed to repeat developers.
- • Fund II attracted eight institutional LIHTC investors, including five new relationships and three returning investors from Fund I, demonstrating market confidence and expanding the firm's investor base from 13 total institutional relationships in less than 12 months.
- • Todd Jones, Chief Investment Officer at Greystone Real Estate Capital, emphasized disciplined investment performance and long-term community impact, highlighting the firm's rapid growth trajectory in LIHTC syndication within its first operational year.
Summary
Greystone Real Estate Capital, a national low-income housing tax credit (LIHTC) syndicator established in 2024, has closed its second multi-investor fund at $137 million, accelerating the firm's market presence in affordable housing equity syndication. The closing of Greystone Affordable Housing Fund II follows the firm's inaugural fund completed in August 2025, with combined closings totaling more than $240 million in equity capital deployed in less than 12 months of operation.
Fund II will support the development and preservation of approximately 1,960 affordable housing units distributed across 20 properties spanning nine states. The portfolio exhibits a balanced construction and rehabilitation profile, with 60% allocated to new construction and 40% to preservation/rehabilitation projects. A significant 80% of the properties benefit from project-based rental subsidies, providing stable, government-backed revenue streams essential for long-term fund performance. The portfolio serves residents with an average affordability level of 56% area median income, demonstrating the fund's focus on serving lower-income populations.
The fund structure reflects disciplined sponsor selection, with approximately 84% of equity allocated to developments by repeat developers, underscoring Greystone's emphasis on established, experienced development partners with proven execution track records. Fund II attracted eight institutional LIHTC investors, comprising five newly established relationships and three returning investors from Fund I. This investor composition signals both market expansion and investor confidence, as the firm has established 13 total institutional LIHTC relationships through its multi-investor and proprietary fund offerings in under one year.
Todd Jones, Chief Investment Officer at Greystone Real Estate Capital, characterized Fund II as "another important milestone in the growth of our affordable housing platform," emphasizing the firm's commitment to "disciplined investment performance while financing housing that creates lasting impact in communities across the country." The rapid capital deployment—exceeding $240 million across two funds in approximately one year—positions Greystone as an active participant in the LIHTC syndication market during a period of sustained demand for affordable housing equity capital.
Fund II will support the development and preservation of approximately 1,960 affordable housing units distributed across 20 properties spanning nine states. The portfolio exhibits a balanced construction and rehabilitation profile, with 60% allocated to new construction and 40% to preservation/rehabilitation projects. A significant 80% of the properties benefit from project-based rental subsidies, providing stable, government-backed revenue streams essential for long-term fund performance. The portfolio serves residents with an average affordability level of 56% area median income, demonstrating the fund's focus on serving lower-income populations.
The fund structure reflects disciplined sponsor selection, with approximately 84% of equity allocated to developments by repeat developers, underscoring Greystone's emphasis on established, experienced development partners with proven execution track records. Fund II attracted eight institutional LIHTC investors, comprising five newly established relationships and three returning investors from Fund I. This investor composition signals both market expansion and investor confidence, as the firm has established 13 total institutional LIHTC relationships through its multi-investor and proprietary fund offerings in under one year.
Todd Jones, Chief Investment Officer at Greystone Real Estate Capital, characterized Fund II as "another important milestone in the growth of our affordable housing platform," emphasizing the firm's commitment to "disciplined investment performance while financing housing that creates lasting impact in communities across the country." The rapid capital deployment—exceeding $240 million across two funds in approximately one year—positions Greystone as an active participant in the LIHTC syndication market during a period of sustained demand for affordable housing equity capital.
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