Greystone Real Estate Capital Closed $137M Affordable Housing Development Fund – Commercial Observer
Stephen Rosenberg’s Greystone Real Estate Capital continues its equity push into U.S. affordable housing.
Commercial Observer can first report that Greystone Real Estate Capital closed its second affordable housing fund — Greystone Affordable Housing Fund II — securing $137 million of Low-Income Housing Tax Credit (LIHTC) financing from several investors to support the development and preservation of nearly 2,000 affordable housing units across 20 properties in nine states.
Fund II follows the earlier launch of Greystone Affordable Housing Fund I, which closed in August 2025 with approximately $105 million of institutional investor equity. This fund has since invested into the development and preservation of almost 1,000 affordable housing units in 11 U.S. real estate projects.
The closing of Fund II utilized capital from eight institutional LIHTC investors, whose names could not be released, but three of them are repeat investors from Fund I.
All total, Greystone has raised $240 million of new investor capital for national affordable housing projects in less than 12 months.
“The closing of Fund II reflects both the market’s confidence in our affordable housing platform and Greystone’s longstanding commitment to creating and preserving affordable housing nationwide,” said Rosenberg, CEO of Greystone, in a statement.
Todd Jones, chief investment officer at Greystone Real Estate Capital, told CO via email that the firm’s impetus to create the funds came from the ongoing national shortage of affordable housing and “the growing institutional investor demand for high-quality impact investments,” which can benefit from tax incentives in the Community Reinvestment Act.
“Institutional investors are increasingly seeking investments that generate meaningful social impact alongside stable, long-term risk adjusted returns,” said Jones.
The new equity will be split between 60 percent new construction and 40 percent rehabilitation of affordable housing projects, with 80 percent of portfolio properties benefiting from project-based rental subsidies and serving residents with an average affordability level of 56 percent of Area Median Income.
States that are home to projects in the portfolio include North Carolina, Louisiana, Illinois, Pennsylvania, Connecticut, Arkansas, Tennessee, New Jersey and Ohio.
“Fund II is expected to invest in affordable housing developments across a broad geographic footprint throughout the United States, with an emphasis on markets demonstrating strong affordable housing demand and experienced development partners,” said Jones.
Fund II is expected to finance individual equity investments ranging from $3 million to $29 million, creating an average equity investment of $11 million. But will fund total development costs, including debt capital, of nearly $500 million, across the 20 properties.
The new LIHTC developments are projected to create roughly 2,700 jobs and generate an estimated $300 million in business revenue and at least $111 million in local tax revenue, according to Greystone.
“We are pleased with both the quality of the portfolio and the strong LIHTC investor and developer reception, which helped create the foundation and momentum for Fund II,” said Jones.
Brian Pascus can be reached at bpascus@commercialobserver.com.
