Episode 118: Greystone Closes $137M Affordable Housing Fund II

Greystone Real Estate Capital has closed its second affordable housing fund, raising $137 million in LIHTC equity from eight institutional investors to support nearly 2,000 affordable housing units across 20 properties in nine states. Combined with the $105 million Fund I close in August 2025, Greystone has now raised $240 million in under 12 months — a signal of accelerating institutional appetite for affordable housing as an asset class. Key Takeaways: Fund II closed at $137 million; combined with Fund I, Greystone has raised $240 million total in less than 12 months. Eight institutional LIHTC investors participated in Fund II; three are repeat investors from Fund I, indicating strong platform execution. Portfolio is 60% new construction / 40% rehabilitation, with 80% of properties carrying project-based rental subsidies. Average affordability level across the portfolio is 56% of Area Median Income. Individual equity investments range from $3 million to $29 million, averaging $11 million per deal; total development costs including debt approach $500 million. Portfolio spans nine states: North Carolina, Louisiana, Illinois, Pennsylvania, Connecticut, Arkansas, Tennessee, New Jersey, and Ohio. Projected economic impact includes ~2,700 jobs, ~$300 million in business revenue, and at least $111 million in local tax revenue. The Greystone story is worth tracking for what it signals about institutional demand. CRA-motivated investors are increasingly drawn to LIHTC funds as a vehicle for stable, long-term, impact-linked returns — and the repeat investor participation in Fund II suggests that demand is translating into real performance confidence. Developers active in the nine portfolio states should take note of Greystone's deal parameters as a benchmark for where institutional fund capital is pricing and sizing today. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.