NEW YORK CITY—R4 Capital, a national affordable housing tax-credit syndicator and asset manager, has launched a new business, R4 Capital Funding, a tax-exempt debt platform that provides mortgage capital for affordable multifamily housing properties throughout the US.
Industry professional James Spound Tuesday joined R4 Capital to serve as president of R4 Capital Funding, while Tara Nussbaum also was brought to R4 Capital as SVP of its new debt business.
R4 Capital Funding will provide mortgage capital by originating, structuring, acquiring, and securitizing tax-exempt mortgage revenue bonds issued by state and/or local housing agencies and authorities to finance the new construction or acquisition/rehabilitation of affordable multifamily housing properties.
"Initially, R4CF will offer a direct purchase bond program that provides affordable housing developers with a highly efficient construction and permanent financing execution," says Spound. "On the investor side, Spound added, "through R4CF, R4 Capital intends to provide innovative investment opportunities founded on R4 Capital's expertise and ongoing commitment to affordable housing."
Marc Schnitzer, R4 Capital president and founder, expects certain financial institutions who invest with R4CF to receive credit under the Community Reinvestment Act for investments in the tax-exempt securities that finance properties in their respective service areas.
Schnitzer and Spound spent 10 years working together at Centerline Capital Group (formerly CharterMac, a tax-credit syndicator), where they collaborated on the origination, management, and permanent securitization of a $2.8-billion affordable housing mortgage revenue bond portfolio.
Before R4 Capital, Spound served as president of Red Stone Tax Exempt Funding since 2011, where he led Red Stone's efforts to raise investor capital and provided financing for approximately 12,000 affordable housing units in 21 states, representing nearly $700 million of tax-exempt bond acquisitions.
Nussbaum joins R4 Capital Funding with over 15 years of private and public sector affordable housing finance experience. She spent 13 years at MuniMae, achieving the position of managing director leading capital markets transactions, including securitizations and hedging, for a $2-billion affordable housing mortgage revenue bond portfolio.
"I know Jim well and respect his professionalism in all business dealings. He brings a level of knowledge and client service in his business approach that align with the R4 corporate culture," says Schnitzer. "And Tara adds depth to our securitization business, along with a keen understanding of how capital markets function in all market cycles. I am excited to be able to even better serve our clients with an enhanced line of investment and financing products as part of our in-house expertise managed by two of the best talents in our industry."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
