Fact Sheet For Developers
Uptown District
Fund Information
The San Diego Smart Growth Fund ("The Fund") is a $90MM fund that provides
equity and mezzanine financing to third party developers for the development
of workforce housing in the greater San Diego area.
Developer Partnerships
The Fund provides for-profit and not-for-profit developers with institutional
capital resources and development expertise to create for-sale housing in
urban communities throughout San Diego. The Fund offers developers
a consistent source of equity and mezzanine debt as well as the insight and
technical expertise that comes from a deep understanding of the region's urban
total urban investment solution.
| Investment Criteria | |
| Investment Size | $1MM to $20MM equity investment per project. |
| Project Size | $5MM to $100MM total project cost. |
| Project Unit Size | 30-200 units per project (on average). |
| Housing Property Types | For-sale and rental housing: single-family, town homes, condominiums, live/work lofts, attached/detached, multi-family apartments. |
| Geographic Target | Greater San Diego Area. Low to Moderate-Income Census Tracts (LMI's) and Urban Infill Sites. |
| "Workforce Housing" Target | Middle-Income Wage Earners: 80-200% Area Median Income (AMI) for families of four: $55K-130K in San Diego County. |
| Commercial and Mixed Use Property Types | The Fund can invest in pure commercial projects (up to 15% of the total fund) as well as commercial projects that are associated with a residential property. |
| Predevelopment Funding | Funding for land acquisition and other predevelopment activities for properties to be acquired by The Fund. |
| Deal Structure | |
| Equity Investments | The Fund provides "at risk" equity capital to investors. |
| Joint-Venture Structure | The Fund typically forms joint venture partnerships with developers. |
| Equity Position | The Fund typically represents 90% of equity stake in a 75%-80% overall project debt-to-equity structure. |
| Profit-Sharing | Developer profit ranges from 45-55%. |
| Phoenix's Position | Typically receives principal, preferred return (10%-12%) and profit participation. |
| Developer's Position | Receives developer fee (typically 3% of gross sales revenue) and profit participation. |
| Benefits To Developers | |
| Flexibility | The Fund provides flexible deal terms and investment timing. |
| Leverage Housing Experience | Community developers have the opportunity to leverage knowledge and expertise gained through affordable housing development to produce for-sale housing. |
| Economic Yields | The Fund gives community developers the chance to benefit from higher economic returns available within the for-sale housing market. |
Fund Manager
Phoenix Realty Group is a private real estate company with offices in New
York, Los Angeles and San Diego that creates and manages equity funds to
invest in urban residential development nationwide. Phoenix is an experienced
real estate private equity fund management firm specializing in affordable and
workforce housing, including Low Income Housing Tax Credit housing, moderate
income rental properties, and for-sale housing.