(To read more on the multifamily market, click here.)

SAN DIEGO-The San Diego Smart Growth Fund will help to financetwo market-rate developments that will include residential andoffice condominiums. The $90 million fund, run by Phoenix RealtyGroup and The San Diego Capital Collaborative, will putapproximately $4.5 million worth of equity towards residentialunits with $3 million going towards the office condos.Theresidential condominium project will comprise 75 units and 3,000 sfof retail space. Located at 6050 El Cajon Blvd, condo floorplansinclude one, two and three bedrooms with units priced in the$400,000 range. Groundbreaking is slated for the end of 2006 withconstruction spanning one year.San Diego-based Tammy Harpster,Phoenix Realty's vice president for acquisitions, tells Globest.comthat the second project, the Eastlake Village West Office Condos,will begin construction in 6-8 weeks. The development will consistof 10 buildings with a total of 62,784 sf and surfaceparking.Harpster notes that these two projects are the first twofor the fund, with numerous projects being targeted. Though futuredevelopment is dependent upon equity investment, "we will probablycomplete between 15-20 projects, with eight breaking ground thisyear," Harpster tells Globest.com.The residential condominiums willbe located close to San Diego State University. Keith Rosenthal,president and co-founder of Phoenix Realty Group, says thatparticular area has a need for "virtually any middle-incomehousehold that wants to realize the dream of homeownership."Market-rate developments are becoming badly needed inthe county, where homes average $550,000, according to the city'sHousing Commission. To afford a home at that price, a family'sannual household income would have to exceed $100,000, though theaverage income for the area is $64,000.Harpster says that theoffice condos will serve small business owners who want to owntheir own property. She tells Globest.com that this is the fund'sfirst office condominium project.The residential condominiums willdeveloped by Agoura Hills-based AMCAL Diversified Corporation andUrban+West+Strategies will build the office units. The firm isbased out of Santa Ana.Last year, Globest.com reported that PhoenixRealty Group had completed capitalization of the San Diego SmartGrowth fund, receiving an initial investment of $60 million fromCALPERS. An additional $30 million was added by NorthwesternMutual, Washington Mutual and in-house coffers.