Focus

  • Hospitality
  • Business Parks/Industrial
  • Creative Assets

Hospitality

hopspitalityPRG’s principals’ history in hospitality was borne from their experience with the Colony Palms Hotel.

Shortly after PRG’s predecessor company sold its commercial portfolio in 2005, the firm entered the hospitality industry by acquiring a hotel in Palm Springs and rebranding it The Colony Palms Hotel. This boutique hotel was named by Condé Nast to its prestigious ‘Hot List’, marking it one of the top new boutique hotels in the world in 2008. The Colony Palms Hotel quickly became the preferred desert destination for top Hollywood celebrities and professionals from the entertainment industry.

With a team of highly talented individuals possessing unique disciplines and acting as the management company for the asset, the Colony Palms was recognized as one of the most prestigious boutique hotels and strongest boutique brands in the United States.

Today, PRG has assembled an attractive portfolio of boutique and independent hotels in California which includes Laguna Beach, Indian Wells, Palm Springs and San Luis Obispo. The firm is focused on acquiring and developing new hotels that meet its investment criteria.

“You and your team are to be congratulated on your early accomplishments and I wish you much success as you move forward.”

FourSeasons


-Mr. Isadore Sharp, Founder and Chairman

Experience

Colony Palms Hotel

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From the hotel opening in early 2008 until the property sale in June 2012, PRG’s predecessor company owned and managed the hotel. www.colonypalmshotel.com


Sparrows Lodge

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Travel + Leisure Magazine named the Sparrows Lodge to the prestigious “It” List, marking it as one of the top new hotels in the world. www.sparrowslodge.com


Granada Hotel and Bistro

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Praised by the New York Times as “San Luis Obispo’s first luxury boutique hotel” in December 2012, this intimate boutique hotel is located in an urban locale.  The property was originally built in 1929 and was completely restored with a modern industrial design centered upon the vibrant restaurant and bar. www.granadahotelandbistro.com


Casa Laguna

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The original hotel was constructed in the 1920s and boasts Spanish architecture throughout with sweeping views of the Pacific Ocean. A redesign of the guest rooms and lobby is underway to position the property as a prestigious boutique hotel. http://www.casalaguna.com


San Luis Creek Lodge

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This English tutor style hotel offers a unique guest experience in San Luis Obispo, in close proximity to Cal Poly San Luis Obispo and the downtown area. http://www.sanluiscreeklodge.com


The Alcazar

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The hotel was acquired via bankruptcy in 2010 and was profitably operated under its prior name for 14 months.  The Alcazar was rebranded and introduced to the market as an eclectic boutique hotel in the Uptown (Design District) of Palm Springs.   www.alcazarpalmsprings.com


Pier South

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Located on the sand and oceanfront in the San Diego area of Imperial Beach, this 78 room hotel is a brand new development.  PRG has been retained to provide boutique management and sales/marketing services.  The property is a member of the prestigious Autograph by Marriott collection. www.piersouthresort.com

Business Parks/Industrial

The industrial sector is a primary focus of PRG based on the firm’s deep experience in this sector.  The firm’s principals have extensive experience in the investment, development, leasing and management of industrial properties and a strong track record of success in Southern California.

The firm focuses on the approximate 1.5 billion square foot industrial marketplace in Southern California which is comprised of nine submarkets.  Consistent with PRG’s philosophy, the firm focuses on assets where value can be added via repositioning, redeveloping and/or leasing.

Multi-tenant incubator business parks is a key focal area due to its principals’ long track record of success with this type of asset in Southern California and the firm’s strong in-house leasing and management platform.  The firm targets well located incubator business parks where its leasing and management expertise serve as a critical operating advantage.

PRG primarily focuses on “value-add” opportunities with the following characteristics:

  • Vacant properties requiring lease-up
  • Ability to cure functional deficiencies such as poor loading, low image or other inadequacies
  • Ability to demise the building into smaller units
  • Deals requiring capital infusion to execute the business plan for the property

Case Study: Laurel Park Commerce Center (Rancho Dominguez, CA)


SITUATION:
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•2006:Seller acquired property and secured condo map for individual commercial/flex/industrial units with the plan to sell units for $255/sq. ft. Seller’s total investment basis and outstanding loan balance was $165/sq. ft.
•2011: PRG acquired the business park via a short sale transaction at $78/sq. ft., representing a 50% discount to the outstanding loan balance
•The Business Park was acquired via a friendly short sale transaction between borrower/seller and lender
•The Business Park was 29% occupied by 3 month-to-month tenants at acquisition
•Broker sentiment was very negative due to lack of tenant demand and high vacancy at competing business parks.



STRATEGY AND EXECUTION:
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•Repositioning strategy included addressing deferred maintenance, improving appearance and presentation of the asset.
•Leasing strategy included competing for “market share” by offering tenants in competing properties the best deal (higher quality product at a discount).
•Personal relationships with brokers representing these tenants, based on 14 years of relationships.
•Aggressive campaign directly to tenants to demonstrate the leasing value proposition



RESULTS:
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•Occupancy of 98% was achieved in Month 9 of ownership (projected stabilization occupancy was Month 18)
•Actual rents were significantly higher and capital costs were significantly lower than proforma.
•High quality tenant mix including NYSE company, bio-tech firms and industrial entrepreneurial companies


Leasing Platform

Leasing is a major operational strength of the PRG platform.  In addition to handling leasing for its own properties, PRG’s affiliated advisory firm has represented third party clients in industrial, business parks, and creative office.  Clients include Travelers (NYSE: TRV), Prologis (NYSE: PLD), PS Business Parks (NYSE: PSB), Cornerstone Realty Funds, Transwestern, First Industrial Realty Trust (NYSE: FR) and RREEF.

PRG’s affiliated advisory firm has earned a reputation for delivering results in creating and executing “value add” business plans resulting in leasing buildings at higher rates.  Exceptionally strong relationships within the brokerage community and a reputation for integrity are at the foundation of PRG’s success in leasing.

Creative Assets

Creative assets are a key focal area due to the emerging demand for creative office space among entertainment and technology firms combined with PRG’s understanding of these assets from an advisory capacity.  The firm has very strong relationships within both the entertainment and technology industries which provides a key advantage in considering investment properties and locations.

As the manner in which professionals work has changed, PRG endeavors to be a leader in defining the creative workspace.  From an investment perspective, the ability to convert industrial buildings to creative buildings is a core part of its strategy.

Case Study: Santa Monica Airport Adjacent Building (West Los Angeles, CA)


SITUATION:
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1970-2012: Seller was a family and operated the property with the focus on maintaining high occupancy and below-market rents.
2013: PRG acquired the property via an off-market transaction at $264/sq. ft., representing a 30% discount to replacement cost.
•Nearly all of the tenants were on month-to-month leases. Average unit size is 1,020 square feet.



STRATEGY AND EXECUTION:
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• Attractive West Los Angeles location provides opportunity to improve and modernize the appearance of the property.
• Entered into one year lease agreements with the month-to-month tenants.
• Engaged architect to collaborate on a new façade and signage plan.



RESULTS:


•Strategy and Execution Plan is currently in progress.


Leasing Platform

Leasing is a major operational strength of the PRG platform.  In addition to handling leasing for its own properties, PRG’s affiliated advisory firm has represented third party clients in creative office, industrial and business parks.  Clients include Travelers (NYSE: TRV), Prologis (NYSE: PLD), PS Business Parks (NYSE: PSB), Cornerstone Realty Funds, Transwestern, First Industrial Realty Trust (NYSE: FR) and RREEF.

PRG’s affiliated advisory firm has earned a reputation for delivering results in creating and executing “value add” business plans resulting in leasing buildings at higher rates.  Exceptionally strong relationships within the brokerage community and a reputation for integrity are at the foundation of PRG’s success in leasing.

 

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