As process-oriented investors, we focus on the fundamentals of real estate investing. On the asset level, our investment strategies are specifically tailored and structured to deliver success irrespective of market conditions and economic cycles. Through a detailed risk assessment and rigorous due diligence of every opportunity, we implement a twin focus: physically modernizing properties while improving operations through new management and leasing initiatives. We utilize the most appropriate capital structures at acquisition, tailoring terms and durations to suit the specific need of each project — with a leverage target of 65% of total project costs. Our unfettered access to the capital markets and deep relationships with lenders and institutional investors, ensures that we achieve the lowest cost of capital available in the industry.
PRP’s barbell approach focuses on strategies that deliver current income and appreciation, and deep repositioning and growth. We differentiate ourselves by unlocking value from each asset by quickly understanding and underwriting complex transactions.
Asset-Level Value Creation
We do not rely upon momentum-based strategies to drive returns. Rather, we focus on each project using a holistic assessment to understand each investment opportunity and risk profile. We derive profit from executing defensible yet flexible business plans — whether by turning around a distressed asset or repositioning a property.
Research-driven Investment Discipline
Real estate fundamentals, broad macroeconomic research and capital markets expertise are the cornerstones of our investment decisions. Armed with this data and our multi-cycle experience, we are experts in ascertaining and underwriting risk. By targeting investments across different property sectors and different geographies, we create highly diversified investment portfolios.
Focus on Leverage and Exit Strategies
Properly structuring and limiting leverage is critical to our success. We acquire high-quality, well-located assets that appeal to a wide range of buyers while emphasizing the importance of multiple exit strategies — including private one-off sales, portfolio sales within common asset classes and recapitalization.
PRP’s approach to unlock value focuses on a fundamental approach of modernizing properties by correcting physical issues, implementing a renovation strategy while improving operations through new management and leasing initiatives. The goal of our restore to core approach delivers higher rents as a direct result of these efforts. PRP has a keen focus on utilizing the most appropriate capital structures at acquisition, relying on moderate levels of non-recourse financing with terms and durations tied to the specific business plan for each asset with a leverage target of 65% of total project costs. Our deep relationships with both banks and institutional Limited Partners ensure we achieve the lowest cost of capital available in the industry. Founded in 2005 by Paul Dougherty, PRP has acquired or built approximately $3 Billion real estate investments in 17 different markets nationwide.
Our investment professionals have decades of experience in all facets of the commercial real estate industry. As individuals and as a team, we have experienced multiple real estate, capital markets and economic cycles: periods of prosperous stability and great volatility. Throughout all of this we’ve maintained our focus as patient and confident stewards of investor capital while assembling a top-tier portfolio.
Net Lease Office and Industrial
Headquarters or mission-critical net lease investments
$100MM+ in size
First-generation or recently renovated assets
Lease terms of 12 years or more
Located in the top 10 markets nationwide
Leased to BBB or higher-rated companies
Will consider BB-rated companies or private companies with a shadow rating
Urban and close-in suburban locations that can be repositioned to modern, Class-A office buildings
Projects from 200,000 SF+ Acquisition costs ranging from $100MM+
Capital improvement budgets ranging from $25MM+
Preference for investments that minimize operating cash shortfalls during renovation in order to maintain current income to investors (>50% leased)
Require $5k–$20k per unit in renovations
Class A- to B-, which can be improved to Class A to B+ quality
Suburban in-fill locations: 3- or 4-story walk-up in mature submarket locations
Urban locations: 4- to 6-story podium and/or wrap structures with structured parking
Newer than 1995
Accretive moderate in-unit and common area renovation programs of $5,000 per unit to $20,000 per unit, funded through debt facilities, producing >22% IRRs on renovation dollars