As we enter a new year at PEG, I’d like to reflect on our 2019 successes and provide a glimpse into the exciting opportunities that 2020 will bring.
Among the most notable accomplishments this year are the closings of our first full-scale fundraising efforts in both PEG Capital Partners Fund III, LP and PEG Opportunity Zone Impact Investors Fund, LP. Through those funds, we accomplished our goal of committing over $250M to our robust development pipeline.
Last year’s equity raise pushed PEG to expand and grow its network well beyond the Mountain West. Today, we have equity partners all over the United States including in Florida, Minnesota, Texas, New Jersey, Ohio, and more. The surge in new interest that PEG continues to garner reflects investor confidence in our vison and projects.
The year 2019 also saw some amazing projects come together despite challenging market conditions including the following:
- Hyatt Place Anchorage – our latest Hyatt Place property (#5) consisting of 150 keys and located just minutes outside of downtown Anchorage
- Another acquisition that furthers PEG’s extended stay conversion strategy – a Residence Inn by Marriott in Smyrna, GA
- Brick Lofts – an adaptive conversion from office to apartments in Millcreek, UT with a second phase soon to come
- Willow Park Medical Office Phase I – 39,000 SF of office space along Main Street in Lehi, UT
- Staybridge Suites Phoenix-Biltmore – 106 keys located near the Phoenix Children’s Hospital, Abrazo Arizona Heart Hospital, and St. Joseph’s Medical Center
- City View St. George – 66 units located in a thriving historic downtown district of Southern Utah with 44 more to open this winter
- The Advenire – A 60-key luxury boutique Autograph Collection property touted as the first full-service four-star hotel in St. George, UT
On January 1, 2020, we formalized a company-wide organizational change by vertically integrating all of our companies: PEG Development, PEG Capital Partners, VPS, and In-Group Hospitality. These separate organizations have combined to form PEG Companies, a full-service real estate investment firm that capitalizes on opportunity through development and acquisition, providing owner-focused oversight and management, from concept to operations. This roll-up will benefit PEG and our investors in layers of ways including but not limited to the following:
Vertical Integration. Rolling up our companies under one umbrella company will give PEG an advantage over our competitors by giving us greater process control, improved continuity, better service to our investors, and increased dedication to PEG’s brand integrity.
Greater Process Control. We now control every phase of the process including development/construction, asset management, property management, leasing, and investor reporting. This integration allows us to better control the quality of our projects while minimizing costs, mistakes, and delays.
Continuity. All 1,100+ PEG employees can now unite under a common mission. Knowledge can be shared seamlessly, and all projects will share the same quality PEG is known for delivering. This will improve communication at all levels of the company including investor reporting.
Better Service. Staying true to PEG’s values, we can deliver better service to both tenants and investors by sharing services and information faster; thus allowing us to focus on fostering stronger relationships.
On behalf of PEG and its entities, Happy New Year! We look forward to continue positioning the firm in the most competitive way and delivering on our next big plans. Stay tuned for new opportunities this year, especially those surrounding our extended stay strategy, core/downtown multifamily deals, and targeted hospitality projects.