Red Stone's Record $1.75B Year Fuels Affordable Housing Push

NEW YORK, NY – January 15, 2026 – As the nation grapples with a deepening affordable housing crisis, private capital continues to play a pivotal role in forging solutions. Red Stone Equity Partners, a real estate investment firm specializing in affordable housing, announced a landmark achievement today, having raised a company record of $1.75 billion in equity in 2025. The historic year pushes the firm's total equity raised and invested since its 2007 inception past the $13 billion milestone, channeling significant institutional capital toward creating and preserving desperately needed housing across the United States.

The massive capital injection comes at a critical time. While the Low-Income Housing Tax Credit (LIHTC) program remains the nation's most powerful tool for financing affordable rental housing, the market faced significant headwinds in 2025. Economic uncertainty, rising interest rates, and legislative ambiguity caused the average price paid for tax credits to decline, creating a more challenging environment for developers seeking equity. Yet, Red Stone Equity successfully navigated this landscape, securing commitments from 28 different institutional limited partners, a testament to enduring investor confidence in the sector and the firm's platform.

"2025 was a defining year for Red Stone Equity," said Ryan Sfreddo, the company's Chief Executive Officer. "We continued to scale our platform with discipline. Our 2025 results reflect the extraordinary work of the entire Red Stone team, whose determination, judgment, and execution continue to differentiate our company."

The Engine of Development: LIHTC in Action

The bulk of the capital, $1.67 billion, was raised through funds centered on the LIHTC program. This included $1.275 billion in proprietary funds tailored for single investors and another $394.1 million in multi-investor funds. This capital is already being deployed, with company-sponsored funds investing in 82 LIHTC properties across 28 states last year.

Contributing significantly to this total were two major multi-investor funds closed in 2025. Fund 116, a $224.6 million vehicle, attracted nine institutional investors, including four who were new to the firm's platform. A second vehicle, Fund 122, raised $169.5 million from seven institutional backers, with more commitments expected. Together, these two funds alone are set to finance the construction or rehabilitation of 35 affordable housing communities, delivering more than 2,750 high-quality rental homes and generating an estimated 6,980 jobs in the process.

This activity highlights the dual economic and social benefits of the LIHTC program. While providing investors with tax incentives and stable, long-term returns, the program directly stimulates local economies through construction jobs and provides stable, affordable homes for low-income families, seniors, and veterans. The strong investor demand, even in a cautious market, underscores a growing consensus among institutional players that affordable housing is a durable, mission-driven asset class with bipartisan support.

Sfreddo acknowledged the crucial role of these partnerships, stating, "We are equally grateful for the long-standing trust and partnership of our investors and developer partners, whose collaboration and conviction have been central to our success. Over the past 19 years, we have sought to build a best-in-class tax credit syndication and fund management company designed to perform across market cycles, and 2025 stands as a testament to the strength of that foundation."

Beyond New Builds: The Critical Shift to Preservation

While the creation of new housing remains paramount, a growing focus within the industry is the preservation of existing affordable units at risk of being lost. Many older properties financed with subsidies are approaching the end of their mandatory affordability periods, threatening to convert to market-rate rents and displace long-term residents, particularly in high-cost areas. Recognizing this, Red Stone Equity has strategically expanded its focus beyond LIHTC syndication.

In 2025, the firm deployed nearly $80 million in non-LIHTC preservation equity. This capital was used to acquire and safeguard three properties in California and Texas, preserving a total of 910 affordable rental units and protecting them from market-rate conversion. This represents a significant expansion of a business vertical the company first entered in 2024.

"Preservation is an increasingly important component of addressing the affordable housing crisis," added Mike Wiggers, President of Red Stone Equity. "By protecting and preserving the existing housing stock that is at risk of conversion to market-rate use, we are able to extend affordability, stabilize communities, and complement our long-standing focus on LIHTC syndication. The three non-LIHTC preservation investments that our team sourced and closed in 2025 underscore Red Stone Equity's dual commitment to creating new affordable housing and safeguarding existing communities in high-need markets."

This dual strategy of creating new supply while protecting existing stock represents a more holistic approach to the housing crisis, ensuring that gains made through new construction are not offset by losses from the existing inventory.

A Blueprint for Mission-Driven Finance

The record-breaking year is not merely a reflection of market opportunity but also of a deliberate internal strategy. The firm's success in attracting capital is increasingly tied to the rise of Environmental, Social, and Governance (ESG) and impact investing mandates among institutional investors. Affordable housing, with its clear social benefits, aligns perfectly with these goals. Red Stone's track record, which includes financing 932 megawatts of standalone solar energy installations alongside its housing developments, further strengthens its ESG proposition.

To support this growth, Red Stone Equity has focused on strengthening its internal foundation. Throughout 2025, the company invested in its leadership team, promoted key personnel to expand management depth, and rolled out new technology initiatives to enhance its operational infrastructure.

"Our results reflect not only market opportunity, but the strength of our team and our culture," Sfreddo noted. "We remain committed to investing in our people and our platform so that we can continue to execute at scale while staying true to our mission and building upon the cultural tenets that have been the cornerstone to our success over the last 19 years."

Since its inception, the firm's sponsored funds have financed the construction and rehabilitation of nearly 900 properties, containing more than 75,000 affordable rental homes. This impact is spread across 47 states, Washington, D.C., and Puerto Rico, demonstrating a nationwide footprint and a sustained commitment to addressing one of the country's most pressing social challenges.