(To read more on the multifamily market, click here.)
NEW YORK CITY-Phoenix Realty Group has teamed up with the Housing Partnership Development Corp. on a $250-million fund to create workforce housing, mixed-use and commercial properties in New York, New Jersey and Connecticut. Metropolitan Workforce Housing Fund will provide market-rate housing to middle-income families as well as community-revitalizing commercial development.
By partnering to make equity investments with community-based developers, the fund's capital will be leveraged to provide more than $1 billion of residential and commercial development, according to J. Michael Fried, Phoenix Realty Group founder and chief executive officer. Investors are expected to include pension funds, banks and insurance companies.
A spokesperson tells GlobeSt.com that the firm is scouting properties and should have a closing soon. Housing Partnership Development will serve as the local advisor to the fund manager. Individual project investments may range from $3 million to $20 million for projects that could range in size from $10 to $100 million.
"At a time when the Tri-State region has experienced significant growth in jobs and population and tremendous inflation in housing costs, it's essential to increase the availability of housing that is affordable to the key middle-income workforce including teachers, office workers, firefighters and police," explains Keith Rosenthal, president and co-founder of PRG. PRG currently manages an additional $243 million in funds building workforce housing and commercial properties in California.
PRG managing director and co-founder Ron Orgel adds that New York, New Jersey and Connecticut share a common problem with first-time homebuyers preferring to raise their families close to their jobs in the urban core being shut out of costly housing markets. "We're meeting a pent-up demand for housing and commercial developments located in emerging and under-served urban markets."
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