January 30, 2008

• Leading Pension Funds Complete Capitalization for Urban-focused Private Equity Funds

New York and Los Angeles - Phoenix Realty Group (PRG) today announced it has completed the capitalization of two real estate private equity funds with a total of $470 million invested by some of the country's largest public pension funds and insurance companies. These latest fund closings now bring the total PRG urban fund capitalization to $725 million, which is being leveraged to create $3.5 billion in market-rate rental and for-sale housing, mixed-use properties, and commercial developments in urban and infill areas nationwide.

Investors in this 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," said J. Michael Fried, chief executive officer of PRG. "These investments will build on the successes we have had with prior funds and maintain our position as a strong and opportunistic investor."

"With the addition of these institutions to our investor group, we are proud to have the support of many of the most prominent public pension funds, insurance companies and banks in the country," said Keith B. Rosenthal, president of PRG. "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 organization."

The funds now closed are the Metropolitan Workforce Housing Fund and the Genesis Workforce Housing Fund II, focusing on the New York/New Jersey/Connecticut tri-state metropolitan area and greater Los Angeles area, respectively. PRG's portfolio of equity funds target urban real estate development and acquisition opportunities nationwide.

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Phoenix Realty Group (www.phoenixrg.com) is a national real estate investment firm providing capital and expertise to urban developers focused on middle-market, for-sale and rental housing; low-income tax-credit housing; and mixed-use and commercial projects. Phoenix Realty Group has attracted investments from many of America's leading pension funds, banks and insurance companies, and currently manages private equity and tax credit real estate funds that represent $3.5 billion in housing and commercial real estate.