Bay Area Council and Bay Area Smart Growth Fund Invests $2.7 Million in Alameda and Contra Costa Counties to Rehabilitate Homes in Low-Income Neighborhoods.

News Editors/Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 7, 2003

Part of a More Than $150 Million Effort by the Business Community

to Revitalize the Urban Core of the Bay Area

Today, the Bay Area Smart Growth Fund and the Bay Area Council announced a $2.7 million investment in Ascend Housing that will acquire and rehabilitate single-family residential housing in Alameda and Contra Costa Counties, targeting low- and moderate-income households. Over the five-year investment horizon, the Bay Area Council anticipates that Ascend Housing will acquire, rehabilitate and sell 190 single-family homes, thanks to the infusion from the Bay Area Smart Growth Fund.

While only just started, so far the Smart Growth Fund investment has resulted in seven refurbished and sold homes in Contra Costa and Alameda, with 13 more currently in inventory.

"This is real life 'infill housing,'" said Elizabeth Ferguson, Bay Area Council Executive Vice President and the managing director of Bay Area Family of Funds. "We are excited about this project not only because the new houses improve the neighborhood, but because they sell at a price point that doesn't displace current residents."

The vast majority of Ascend's homes (75 percent) have sold at levels that are affordable to low- and extremely low-income households, where housing demand is the strongest. Other homes have sold at levels affordable to moderate-income households. Ascend homes meet consistent demand, given the scarcity of affordable housing in the Bay Area. They also increase the housing inventory in the Bay Area, addressing one of the most important systemic problems the region faces.

"The improvements in these neighborhoods create homeownership opportunities for the local workforce populations, previously priced out of the market," said Sunne Wright McPeak, President and CEO of the Bay Area Council. "Such homeownership opportunities also give people a greater stake in their community and increases neighborhood stability."

The Bay Area Smart Growth Fund has more than $65 million to invest and is sponsored by the Bay Area Council and managed by Pacific Coast Capital Partners.

"The Smart Growth Fund's goal is to finance development that will produce 'double' bottom line results - to promote economic prosperity, social equity and environmental quality while generating market rates of financial return for the Fund investors," said Adam Zoger, a principal at Pacific Coast Capital Partners.

The investors include banks, foundations, individuals, and insurance companies.

"The decision to invest in the Bay Area Smart Growth Fund and the Family of Funds was easy," said Mr. Robert B. Oehler, President of Far East National Bank. "The Bay Area Family of Funds is a great opportunity to tackle so many of the region's long standing issues like housing, transportation and economic development. This is a major initiative and a dramatic shift in how corporations can support the work of not-for-profits and the government sector. We are proud to participate."

The Smart Growth Fund invests in retail, office, commercial, industrial, multi-family and select single-family housing opportunities that may make a measurable impact on the economic and social revitalization of neighborhoods in the 46 targeted communities in the San Francisco Bay Area.

The Bay Area Smart Growth Fund is part of the Bay Area Family of Funds, which has currently raised more than $150 million for investments. The Family of Funds includes the Bay Area Smart Growth Fund, the California Environmental Redevelopment Fund, and the Bay Area Community Equity Fund, and is a regional effort to attract private investment into low and moderate-income neighborhoods to promote smart growth, address poverty, support local businesses and clean up contaminated sites with market-based solutions.

About the Bay Area Council:

Founded in 1945, the Bay Area Council develops and drives regional public policy initiatives and researches critical infrastructure issues. Led by CEOs, the Bay Area Council presents a strong, united voice for more than 275 major employers throughout the Bay Area promoting economic prosperity and quality of life. The Bay Area Council serves as a sponsor of the Bay Area Smart Growth Fund, the California Environmental Redevelopment Fund and the Bay Area Community Equity Fund.

About Pacific Coast Capital Partners, LLC:

Pacific Coast Capital Partners, LLC provides investment capital for value-added real estate. Pacific Coast Capital Partners offers equity, mezzanine and senior debt through offices in San Francisco and Los Angeles.