urban and infill revitalization

Urban and Infill Revitalization

Moderator: Xavier GutierrezPhoenix Realty Group

September 19, 2007

Urban and Infill RevitalizationPanelists

Eric HolomanPresident, Board of Administration

Herman SantosBoard of Investments

Steve JuarezBoard of Administration

About Phoenix Realty Group (PRG)PRG is a national real estate fund manager that provides:

• Capital and expertise to urban developers

• Opportunistic rates of return in geographically targeted investments to institutional investors

Investment focus:• Urban and infill development

• Rental, for-sale and affordable housing

• Community-revitalizing commercial and mixed-use

About Phoenix Realty Group (PRG)

Private Equity and Tax Credit funds:

• $800 million in funds

• $4.1 billion in development

• 12,400 units

• 500,000+ commercial square feet

Economic Benefits and Social ImpactDoing Well by Doing Good

Geography Focus on urban redevelopment areas

Affordability Create housing affordable to incomes of 60% to 200% of area median

Tax Revenues $130 million in construction sales tax and$5 million in recurring annual taxes

Job Creation Nearly 20,000 construction jobs and 1,600 permanent jobs

Puerta del Sol

Lincoln Heights, Los Angeles

Santee Village

Downtown Los Angeles

Fifth on the Park

Harlem, New York

A Case StudyOn Baldwin Hills Crenshaw Plaza (“BHCP”)

Los Angeles, CA

By Herman SantosMember of The Board of Investments for LACERA

September 19-20, 2007

2005 Population

2005 Average Household Income

Ethnic Mix: 3-Mile Radius

Source: Claritas

10-Year NOI and Cash Flow

Urban and Infill Revitalization

What programs have you created to invest in urban and/or infill revitalization efforts?

Urban and Infill Revitalization

What makes these investments attractive?

Urban and Infill Revitalization

What was the process to establish these programs, and what lessons could you share with other pension boards looking to establish similar programs?

Urban and Infill Revitalization

What key criteria do you use to evaluate fund managers and investments in the urban market segment?

Urban and Infill Revitalization

What is the downside risk of these investments?

Urban and Infill Revitalization

What advice do you have for fund managers seeking to serve public pension funds in these areas?

Urban and Infill Revitalization

What do you see as the next big urban and infill opportunities on the horizon?