LOS ANGELES-Phoenix Realty Group has launched a $50 million Urban Housing Fund designed to invest in middle-market for-sale and rental housing in urban communities statewide. Called the California Urban Housing Fund, it will provide what Phoenix calls a "ready source of capital for strategic investments in emerging urban markets."
Phoenix, which already has relationships with community developers throughout the state, says the new fund is designed to increase the production of housing that is affordable to "key members of the middle-income work force" including teachers, office workers, fire fighters and police, according to J. Michael Fried, PRG founder and CEO.
Fried says that the new fund will not compete with the firm's two other funds that will provide more than $1 billion of work force housing and community revitalizing retail developments in Greater Los Angeles and San Diego. The others are the $103-million Genesis Workforce Housing Fund and the $90-million San Diego Smart Growth Fund.
Jay Stark, Los Angeles-based managing director for the western region of PRG, will direct the California Urban Housing Fund. With leverage, he points out, the fund's capital will provide some $200 million of residential development with individual project investments ranging from $3 million to $15 million for projects valued at between $10 million and $150 million. The fund may also invest in commercial projects including community retail, office, medical and warehouse space.
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