PRG is a fully integrated real estate company focused on investing, operating and developing in high growth areas within California with an emphasis on Southern California. The firm is based in Santa Monica and managed by principals with a distinguished track record of success in California. PRG co-invests with institutional and private investors to identify and capitalize on opportunities for attractive risk adjusted returns.
The firm’s strategy is to invest only when it both possesses a deep, nuanced understanding of the asset and submarket as well as a clear business plan utilizing PRG’s competitive operating advantages. Among these advantages is PRG’s experience in all aspects of management and value creation combined with its unparalleled relationship network, which serves as the foundation for the operating and investment platform.
The firm focuses on the following areas:
• Business Parks/Industrial
• Creative Assets
PRG’s investment strategy is grounded in deep proprietary research and extensive study of underlying fundamentals and developing trends. Focus is placed on identifying geographic areas and asset classes that provide catalytic growth potential due to public policy initiatives, positively shifting demand drivers in a given segment or overall asset class mispricing at opportune times in market cycles.
We are value investors, focused on appropriately assessing risk and identifying key areas for outperformance
- 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
- 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
- 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
Invest in high quality properties in California where PRG holds a distinct competitive operating advantage, resulting in a reliable stream of income and opportunity to outperform over time with sizable capital appreciation upside.
PRG only invests when both of the following exists:
- Possess a deep, nuanced understanding of the asset and submarket
- Possess a clear strategy to increase operational performance due to PRG’s competitive advantages
It is a mega-region with a population base of over 22 million. Los Angeles County ranks as the 17th largest economy in the world and is considered one of the most urban infill regions in the US.
Southern California is a dynamic economic base comprised of a range of highly diverse yet interconnected industries. The interconnected nature of the region is evidenced as industrial buildings are converted to creative office buildings and apartments are converted to hotels. Furthermore, historically industrial areas gentrify into creative office hubs which pushes industrial demand out into previously under-appreciated industrial areas. Unlike many regions in the US, the high degree of transformation is relatively high in Southern California.
PRG believes its best opportunities for success are to operate and invest in the submarkets where it has the most experience and best understanding. Due to the highly integrated nature of seemingly diverse industries and asset classes, PRG believes a primary competitive advantage is deeply understanding the various industries and interconnected nature in Southern California.