[column-group]
[column]<strong>SITUATION:</strong>
<a href="http://www.prgim.com/wp-content/uploads/2013/08/ScenarioPic.png"><img class="alignleft size-medium wp-image-258" alt="ScenarioPic" src="http://www.prgim.com/wp-content/uploads/2013/08/ScenarioPic-300x200.png" width="300" height="200" /></a>[/column]
[column span="1.8"]<b>•2006:</b>Seller acquired property and secured condo map for individual commercial/flex/<br />industrial units with plan to sell units for $255/sq. ft. Seller’s total investment basis and outstanding loan balance was $165/sq. ft.
<b>•2011:</b> PRG acquired business park via short sale transaction at at $78/sq. ft., representing a 50% discount to outstanding loan balance
•Business Park was acquired via a friendly short sale transaction with borrower/seller and lender
•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.[/column][/column-group]
[column-group]
[column]<strong>STRATEGY AND EXECUTION:</strong>
<a href="http://www.prgim.com/wp-content/uploads/2013/08/strategyPic.png"><img class="alignleft size-medium wp-image-259" alt="strategyPic" src="http://www.prgim.com/wp-content/uploads/2013/08/strategyPic-300x200.png" width="300" height="200" /></a>[/column]
[column span="1.5"]
•Repositioning strategy included addressing deferred maintenance, improving appearance and presentation of the asset.
•Leasing strategy included competing for “market share” by offering tenants in<br /> competing properties the best deal (higher quality product at a discount).
•Personal relationships with brokers<br /> representing these tenants, based on 14 years of relationships.
•Aggressive campaign direct to tenants to demonstrate the leasing value proposition[/column][/column-group]
[column-group]
[column]<strong>RESULTS:</strong>
<a href="http://www.prgim.com/wp-content/uploads/2013/08/resultsPic.png"><img class="alignleft size-medium wp-image-257" alt="resultsPic" src="http://www.prgim.com/wp-content/uploads/2013/08/resultsPic-300x286.png" width="300" height="286" /></a>[/column]
[column span="1.5"]
•Occupancy of 98% was achieved in Month 9 of ownership (projected stabilization<br /> occupancy was Month 18)
•Actual rents were significantly higher and capital costs were significantly lower than<br /> proforma.
•High quality tenant mix including NYSE company, bio-tech firms and industrial<br /> entrepreneurial companies[/column][/column-group]