Of that money, the DC area is likely going to receive thebiggest percentage allocation, Reiner tells GlobeSt.com. "It is agreat market with strong fundamentals and we hope to invest 20% to25% of the capital here." Cleveland's Key Bank is a co-sponsor inthe fund.

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The fund, which hasn't dispensed any money yet, is focused on 10markets including New York City, Denver and Los Angeles, but with aheavy emphasis on the Mid-Atlantic. "We are aiming at middle toupper home builders, financing infill projects," Reiner says. Otherthan that demographic and investment criteria, GIM is following thesame star with this fund that the growing numbers of investors indistressed debt are: finding opportunity in the current capitalmarkets crisis.

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"Homebuilders at one time could borrow at 80% loan-to-cost. Nowthey are lucky to get 55% loan-to-cost." The point of the fund isto help the developer make that leap to a 65% or higherloan-to-cost ratio. "It is project-by-project financing," Reinersays. He declines to discuss specific deals but does say that thefirst project is likely going to be in New York City. "By the endof the first half of the year we will have invested in DC." Heprojects that the fund will have invested in at least threeDC-based projects by the end of 2008. Taking the homebuilders' owndebt and equity into account, he expects to invest in between $400million to $500 million worth of projects.

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