$1.40B · 30–80% AMI (rural)
USDA Section 515 and Section 538 rural affordable housing acquisition, preservation, and recapitalization in underserved geographies.
Gr3ySpace Fund VII acquires, preserves, and recapitalizes rural affordable housing communities financed under USDA Section 515 and Section 538 rural rental housing programs. These communities have experienced accelerating physical deterioration from decades of deferred capital investment, with limited private-sector interest in the operational complexity and geographic dispersion that rural asset management requires. Fund VII combines USDA Rural Development financing, LIHTC preservation credits, and long-duration equity to steward this at-risk portfolio.
What this fund does.
- USDA Section 515 direct loan preservation
- USDA Section 538 guaranteed loan financing
- Rural Housing Preservation Grants (RHPG)
- LIHTC preservation in rural markets
- Statewide rural portfolio aggregation
Key economic terms.
- Net IRR Target
- 10–13% net IRR
- Vehicle
- Delaware Limited Partnership
- Fund Term
- 15 years (two 1-year extensions at GP discretion)
- Investment Period
- 5–7 years
- Carried Interest
- 15% above 7% preferred return (100% GP catch-up)
- Preferred Return
- 7%, compounded annually
- Distribution Waterfall
- European (whole-fund) waterfall
- GP Commitment
- 2% of total fund commitments
- Minimum LP Commitment
- $1,000,000
- Auditor
- PwC
- Legal Counsel
- LePore Law Group
Full fund terms are set forth in the Limited Partnership Agreement, Private Placement Memorandum, and Subscription Documents for the applicable fund vehicle. Fund interests are offered only to accredited investors and qualified purchasers.
Institutional cadence, matched to fund complexity.
Request the Fund VII data room.
Qualified LPs may request the Fund VII private placement memorandum, subscription documents, DDQ, Form ADV Parts 1 and 2A, audited fund financials, and ILPA Reporting Template samples through the Gr3ySpace Investor Relations team.