PRP, LLC ("PRP") today announced its second investment on behalf of the U.S. Government Properties Income & Growth Fund, L.P. (the "Fund"). The Fund acquired the Sweetgrass Customs and Border Protection Facility in Sunburst, MT for $13.3 million. Constructed in 2008, the build-to-suit 33,000-SF state-of-the-art border patrol facility is 100% leased to the Department of Homeland Security, U.S. Customs and Border Protection through November 2028. The site is located directly on U.S. Interstate 15, which connects Canada, the U.S., and Mexico, and is in close proximity to the Canadian border and the Sweetgrass Port of Entry, the only 24-hour year-round operating port in Montana. Furthermore, the port is the only one of its kind in the state that is located adjacent to a major thoroughfare. The property is currently obtaining final LEED certification.
The acquisition is the second in a series of investments for the U.S. Government Properties Income & Growth Fund, L.P. The Fund will target an approximately $1 billion aggregate portfolio of Class A U.S. federal government-leased properties fully leased to mission-critical U.S. federal government agencies.
"The border patrol station represents an outstanding opportunity for the Fund to acquire a state-of-the-art stabilized and cash flowing property leased on a long-term basis to the federal government," commented Paul Dougherty, president of PRP. "This is a premium asset, the model for border patrol stations going forward, and the investment's return profile exceeds the baseline returns we have outlined for the Fund."
"In addition to this latest asset, we have a pipeline of 12 similarly attractive investments for the Fund. We are closing on our third and fourth property acquisitions later this week and we have one more property under contract that we will be acquiring over the next three weeks," said Mr. Dougherty. "We are effectively tapping our unique network of owners of GSA assets which gives us preferential access to opportunities that fit our targeted niche. With the recent successful conclusion to our first round of fundraising and a pipeline of investments that fit our investment criteria, we are well positioned to continue making a steady stream of investments for this fund."
About PRP
PRP, LLC is a privately-held management firm headquartered in Washington, DC with offices in Atlanta, GA and New York, NY. Founded in 2005 by Paul C. Dougherty, the firm was formed to provide best-in-class private equity real estate investment management services to institutional investors. PRP is focused on providing strong risk-adjusted returns for investors by investing in private real estate assets throughout the U.S. The firm manages two opportunistic investment funds, and a fund focused on government assets which will provide investors with value-added returns with a core risk profile. For more information, please visit www.prprei.com.
Contacts:
PRP, LLC
Elizabeth Edmunds, 202-741-8412
eedmunds@prprei.com