OUR INVESTMENT PHILOSOPHY
PRG invests in high quality properties in California that meet rigorous underwriting standards and where PRG holds a distinct competitive operating advantage.
Conservative Underwriting Philosophy
- Investments underwritten to account for cyclical nature of real estate market with intense focus on “peak to trough” comparison and long term historical operating performance trends
- Establish a meaningful “margin of safety” with all key assumptions
- Concentrate on opportunities with favorable seller circumstances, transactional complexity or where management expertise can mitigate operating risks
Patient Investment Philosophy
- History of buying and selling based on disciplined investment principles
- Wait for “good buys” vs. “putting money out” philosophy
- Strategy typically based on medium to long term execution of proven operating plans versus “flipping” plans
Focus on Investment Basis
- Acquire assets below intrinsic value and significantly below replacement cost
- Strategy created to provide ability to weather economic storms and defend against adverse economic conditions
- Solid investment basis at acquisition allows for greater flexibility with multiple future exit paths
INVESTMENT CRITERIA
PROPERTY TYPES
Hotels
TRANSACTION SIZE
$4-50 million for a single asset purchase, $20 million plus for a portfolio acquisition
MARKETS
California
TRANSACTION TYPES
Underperforming Assets
Acquisiton of First Mortgage
Co-Investment and/or Operating Partnerships
Ground Lease