Phoenix Realty Group attracts USD470m for urban property funds
Phoenix Realty Group has closed two private equity real estate funds with a total of USD470m in investment from US institutional investors including public pension funds and insurance companies.
The fund closings now bring the total capitalisation of Phoenix's urban property funds to USD725m, which is leveraged to invest a total of USD3.5bn in market-rate rental and for-sale housing, mixed-use properties, and commercial developments in urban and infill areas.
Investors in the latest round of funding included the New York State Common Retirement System, the New York City Employee Retirement System, and TIAA-CREF Global Social and Community Investments.
'Closing these funds at this time demonstrates that investors endorse our long-term strategy, which can weather changing cycles and deliver solid returns on investment,' says Phoenix chief executive Michael Fried. 'These investments will build on our successes with previous funds and maintain our position as a strong and opportunistic investor.'
The firm's president, Keith Rosenthal, says: 'With the addition of these institutions to our investor group, we have the support of many of the most prominent public pension funds, insurance companies and banks in the country.
'These investments are a tribute to our team's deep understanding of urban real estate, and our ability to successfully invest in urban opportunities as a vertically integrated organisation.'
The funds now closed are the Metropolitan Workforce Housing Fund and the Genesis Workforce Housing Fund II, which focus on the New York/New Jersey/Connecticut tri-state metropolitan area and greater Los Angeles area respectively.