Phoenix Realty gathers $176m for workforce housing funds.

Phoenix Realty Groupannounced initial capitalizations of $176 million for two of its urban equity funds that will create nearly $2 billion of residential and commercial development across four states.

The $250 million Metropolitan Workforce Housing Fund has received $96 million of institutional capital from investors including Northwestern Mutual, John Hancock Life Insurance Company, and The Lincoln National Life Insurance Company.

The $175 million Genesis Workforce Housing Fund II received a total of $80 million in equity capital from LA's largest public pension funds--Los Angeles City Employees Retirement System (LACERS); Los Angeles County Employee Retirement Association (LACERA); Los Angeles Department of Fire and Police Pensions (LAFPP)--and John Hancock Life Insurance Company.

"In the past three years, Phoenix Realty Group has created funds whose capitalization will aggregate over $700 million from America's leading institutional investors who are drawn to the opportunity to provide our middle-income workforce with new housing near mass transit, jobs and cultural centers. We are meeting a critical need in major urban areas while providing attractive returns to our institutional investor partners," said Keith B. Rosenthal, president of Phoenix Realty Group (PRG).

"By bringing equity capital to community-based developers, the Metropolitan Workforce Housing Fund will provide over $1 billion of residential and commercial development in New York, New Jersey and Connecticut. The Genesis Workforce Housing Fund II will create $600 million of middle-income housing and neighborhood retail throughout the greater Los Angeles region," explained Xavier A. Gutierrez, PRG senior vice president, capital markets.

Both funds expect to be fully capitalized by the end of March 2007, with all monies invested in market-rate housing, mixed-use and community revitalizing commercial projects in urban and infill locations. Other urban equity funds managed by PRG include the $103 million Genesis Workforce Housing Fund in Greater Los Angeles, the $90 million San Diego Smart Growth Fund, the $50 million California Urban Housing Fund and the $18 million PRG Metropolitan Investors Fund.