EMAIL DETAILS

Great to see you guys yesterday. I just received this and thought you
would like to see it as the intersection between government and real
estate is in your wheel house. It should give youbsome good intel as
to what is going on in the market.

All the best

W

Ward S. McNally
Managing Partner
McNally Capital, LLC
190 S. LaSalle St.
Suite 1620
Chicago, IL 60603

Tel. (312) 357-3715
Fax (312) 629-7609
ward@mcnallycapital.com
www.mcnallycapital.com

Begin forwarded message:

> From: "Joe Sindelar" <jsindelar@xroadcapital.com>
> Date: December 9, 2010 10:03:14 AM EST
> To: <wmcnally@mcnallycapital.com>
> Subject: CROSSROAD CAPITAL PARTNERS- U.S. Government Properties
> Income & Growth Fund, L.P.
>

> Ward,
>
> We are beginning to work with PRP on their GSA properties fund.
> Attached is the summary presentation for your review. Please let me
> know if you would like to take a closer look at this opportunity.
>
> Thank you.
>
>
>
> PRP Real Estate Investment Management is raising a $400 million
> private equity real estate fund, U.S. Government Properties Income &
> Growth Fund, L.P., to make investments in Government Services
> Administration (“GSA”) managed properties. The Fund’s
> aggregate $1 billion portfolio will be made up of modern Class A off
> ice assets 100% leased by the GSA and other U.S. federal agencies.
> GSA property investments should provide investors with the benefit o
> f the U.S. governments AAA credit rating while seeking a 7% current
> yield and 12-14% gross levered IRR.
>
>
>
> Investment Team
>
> PRP’s core management team will utilize its decades-long relationshi
> ps in the GSA community, an area in which the team has conducted bus
> iness over the last 20 years. The depth of the team is unmatched in
> this sector and includes Managing Director Joe Moravec the Public B
> uildings Service Commissioner for the GSA managing more than 8,000 p
> roperties from 2001-2005 and Tom Zarrilli who has managed approximat
> ely $4 billion of GSA credit tenant lease loans.
>
>
>
> In addition to its proprietary deal flow the team has extensive
> personal relationships within the GSA development, finance and
> leasing community. The sector’s long and complicated procurement pr
> ocess, among other barriers to entry, requires firsthand knowledge a
> nd expertise. The team is well positioned to utilize their experienc
> e and expertise to overcome these obstacles.
>
>
>
> Investment Highlights
>
> PRP’s primary goal is to make defensive low volatility investments i
> n GSA real estate assets whose leases are backed by the full faith a
> nd credit of the U.S. government. The Fund will invest 40% of LP co
> mmitments in properties with 15-20 year lease durations that are exp
> ected to provide current income and a high cash-on-cash yield. The
> remaining 60% of LP commitments will be allocated to properties with
> lease durations of 5-10 years where, in addition to current income
> leases, expirations during the hold period will produce increased re
> nt renewals. These investments represent a defensive alternative to
> the core real estate asset class by providing durable cash flows, s
> table returns and 90%+ historical renewal rates.
>
>
>
> Market Opportunity
>
> Income returns on GSA-leased office properties have steadily
> outperformed the NCREIF office index. The GSA lease structure and
> high probability for lease renewals are ideal for long term
> investors seeking current income. Additionally, GSA leased assets
> have lower volatility than traditional office realty markets,
> provide a hedge against inflation, eliminate tenant credit risk and
> offer higher risk-adjusted rates of return.
>
>
>
> Fund Raising Status
>
> The Fund has held its first close and has completed four fund
> investments.
>
>
>
>
>
> Joe
>
> Joseph Sindelar, CFA, CAIA
> Crossroad Capital Partners LLC
> 203-658-0141(direct)
> 917-855-4642 (mobile)
>
> Disclaimer: This message (incl. attachment) is confidential and
> protected from disclosure. For Complete Disclaimers and Disclosures,
> please see http://www.xroadcapital.com/id5.html
>
>