1. The Cornerstone
“The Newsletter So Good Someone Named A Company After It”
PRG Real Estate Management, Inc. Fourth Quarter 2005Volume 6, Issue IV
W
hile Lakecrest in Greenville is an investment
resulting from many hours of hard work and
many miles traveled, not always do we find
investments in that manner. In fact, sometimes the most
outstanding opportunities are the ones you can see out-
side your own office window! And that is a fairly accu-
rate description of PRG’s acquisition of Lancaster Arms,
a 74-unit community located adjacent to our 352-unit
Lancaster Green.
This is a community that we have driven past countless
times over the past ten years and have always wished
that we owned. Given that it is immediately adjacent to
Lancaster Green, it is a natural fit into our portfolio. It
also represents an acquisition in the Central Pennsylvania
area, a location in which we have been seeking to expand
for quite some time.
Lancaster Arms is affordable housing, one of a kind in
PRG’s exclusively conventional portfolio, and will fall into
the Northern Region under the direction of RVP Melissa
Good. Meschelle Sensenig-Roten, now managing Lancast-
er Green, will be promoted to Sr. Property Manager and
will oversee both assets. Betty Hurdle, long-time manager
of Lancaster Arms, will become a PRG employee, offering
stability and continuity to the transaction.
It is unusual that we have taken over a property in such
fine physical condition, thus no renovation program is
contemplated. So we’re pleased to have added another as-
set to the portfolio and are prepared to knock out another
PRG quality performance! “
S
ometimes the art of acquisitions becomes a matter of
logical deduction. Imagine that you are driving down
the road looking for a property named “Lakecrest.” You
see two sign posts, the sign in between missing. There is a
lake. The community set behind it is on a crest. You are just
off the finest road in Greenville. Your deduction tells you that
this is Lake…crest. To investors focusing on the acquisition of
underperforming real estate, this is a thing of beauty. After
viewing dozens of communities in recent months, you have
trouble not screaming “jackpot!”
That is how we found our latest asset, the Lakecrest Apart-
ments in Greenville, South Carolina, a 224-unit community
built in the early 70’s. Situated in an ideal location, minutes
off the local interstate and close to the area’s best shopping
mall, Lakecrest will increase PRG’s portfolio to 29 assets
and 7,000 units.
We had looked at this community and bid on it in Octo-
ber. At that time, we rated it the best opportunity within
a portfolio. Like so many of our best investments, this was
an acquisition that we initially lost but later had a second
chance to acquire.
PRG plans to substantially renovate Lakecrest. However, we
feel extremely fortunate that the property is in sound physical
condition. We therefore can spend our capital dollars on cos-
metic improvements which enables us to increase occupancy
while we also raise rents. Once physical improvements are
complete and top notch PRG personnel are installed, we are
convinced that this will be a five star investment! “
The Needle in the Haystack...
...And The Property
Next Door
Lakecrest Apartments, Greenville, S.C.
Betty Hurdle at Lancaster Arms

2. I
t was no coincidence that Bobby
Bowden led Florida State University
into the Orange Bowl versus Joe Pa-
terno and Penn State. It was a match up
that featured the two winningest coaches
in college football history in arguably the
2nd biggest bowl game of the season.
At PRG, we have a lengthy winning tra-
dition as well. We beat the 2005 budget
by a substantial $978K, increased same
store NOI by 7.1% and have an average
increase of 8.1% over the past 6 years. We
know that, rather than placing our faith
in one-size-fits-all programs, there is no
better way to sustain premium perfor-
mance than through outstanding personnel
management.
This can only be achieved if we receive
top coaching performances from our line
managers. We constantly seek ways to help
our managers become more effective in
coaching people. And most recently this
has been visible in the evolution of PRG
University. Where our emphasis previous
was based upon training the individuals, it
now heavily emphasizes “train the trainer”
type programs.
The benefits that we receive from this shift
are immense, and are felt in the efficiency in
which marketing staff are trained. After all,
when new marketing and sales personnel be-
gin employment, is it better to schedule them
for the next remote training session some
time down the road, or to begin training on
location, day one, at 9:01 a.m.? It is now and
always will be the intent of this company to
be a totally marketing and sales driven opera-
tion. Therefore, the development of effective
trainers keeps our managers intimately in
touch with not only the development of the
person, but also with market conditions. At
most of our competition, property managers
“graduate” out of marketing. At PRG, not
only do our managers never graduate out of
marketing, but I have not and do not intend
to either!
Nowhere in the company has our train the
trainer concept been more skillfully applied
than in the Western Carolinas. Under the
direction of Sr. Property Manager Pamela
Penny-Turnbo, same store NOI increases
for 2005 have been as follows: Magnolia has
increased 13.9%, Wellspring increased
16.3%, Willow Ridge improved 10.7%,
and while The Corners rose only 1.4%, this
was against stellar numbers the year prior.
I have yet to read any articles discussing
an economic boom in South Carolina.
This impressive financial performance
may only be attributable to outstanding
coaching, the best personnel management
system in the land, and a “marketing and
sales come first” mentality. With staff
such as Maria Ferguson, Karen Campbell,
Christy Johnson and Bette Ann Henson
in the management pipeline, we are po-
sitioned to prosper for quite some time
to come as a result of superior coaching
principles. “
W
hile re-financing were a key part of Sr. VP/CFO Dan
Dougherty’s strategy to provide liquidity in 2005, the
year, in the 4th quarter new acquisitions stole the
show.InNovember,Danandhisteamclosedloansof$11.4Mand
$7.2MonForestParkandonBavaria,respectively.Bothloanswere
achievedatarateofapproximately5.5%andareinterestonlyover
the first two years. In December, Dan closed his 3rd acquisition
of the quarter as PRG stepped into an ownership role in The Am-
bassador, a community long-managed by PRG. We look forward
to refinancings of not just The Ambassasor, but also Wellspring,
Lancaster Green and possibly Staples Mill in 2006.
2005 was a benchmark year for PRG in many ways. None was
more important than the strengthening of the Finance Team. In
early Spring, Joanne Zulewski and Eric Hodge joined PRG as our
new Senior Property Accountants, bringing their fine analytical
skills to the Company. Under Sandy Stern’s guidance, Joanne and
Eric have significantly increased the quality of our financial data,
reducing the monthly reporting cycle to five business days.
InJune,KathySimonacceptedtheroleofDirectorofOutsourced
Services,managinginformationtechnology,networksupportand
Yardi system development and training. Kathy was instrumental
in PRG’s successful Yardi implementation in 2004, and has since
led our ongoing training and development initiative with great
distinction.Kathyiscurrentlyexpandingournetworkcapabilities,
including enhancements to PRG’s intranet functionality.
In late summer, Marina Adimari took over as our new Payroll
Administrator. With her supervisor Bobbie Volpe, Marina quar-
ter-backed PRG’s ADP payroll system implementation, which
provides electronic time reporting and on-line access to employee
benefit data.
Novemberwashighlightedbytwowelldeservedexecutivepromo-
tions.SandyStern,PRG’sControllersinceJune2003,waspromoted
to Vice President & Controller, reflecting his contributions to our
ever-improvingfinancialprocesses.In2005,Sandyengineeredour
conversion from cash to accrual-basis accounting, improved ana-
lytics and helped to restructure our employee benefits program.
BobbieVolpe,withovertenyearsofdistinguishedserviceasTrea-
surer , was promoted to Vice President & Treasurer. Responsible
for cash management, payables and employee benefits, Bobbie’s
extensive accomplishments in streamlining these functions have
allowed PRG to thrive through its constant growth. She has been
critical to three major system implementations, and has produced
consistent quality as PRG has more than tripled in size.
In 2005 Dan’s team reengineered PRG’s personnel, processes and
tools to deliver greatly-enhanced value to the tenants, investors
and business partners. There is no doubt that the best is yet to
come! “
Robert Dominy, President
“Coaching Our Way to Success”
Finance Team Strengthens As PRG Grows

3. I
n September of 2005, PRG sold Gateway Lakes. While
that was a grand slam in terms of profitability, our
dispositions group is also utilizing the current sellers
market to clean up the portfolio a bit.
It was in keeping with that spirit that we recently surren-
dered Cheltenham Station, a small 43-unit community
and one of PRG’s early acquisitions dating back to 1987.
We followed up that sale by liquidating Silversmith Creek,
a 140-unit community in Jacksonville Florida.
These are two assets which, over time, have been very good
to us. We will miss the communities, as well as the people
who helped make them such a success! ““
…it was the worst of times. The year 2005 will go down in
history as one in which we encountered the most difficult
buying environment in the past 40 years. Interest rates sank
to levels not seen since the sixties. The condo craze, which hit
our target market in Florida particularly hard, drove cap rates
down to 3% and below. Money everywhere pursued real estate
like never before, subjecting stocks and other investments to
back seat status. So it would not be unreasonable to conclude
that PRG entered into a holding pattern while waiting for the
external environment to change.
While that conclusion would not be unreasonable, it would be
just plain wrong in a company as nimble and quick to change
as PRG! Actually we had our best year ever in acquisitions,
adding the Woodcreek Apartments in Cary, Hilton Village in
Newport News, Bavaria in Nashville, Forest Park in Columbus
and Lancaster Arms in Pennsylvania to our portfolio. We also
purchased the general partnership in Pittsburgh’s The Ambas-
sador, a property that we had previously managed. Further, we
put the Lakecrest Apartments in Greenville under contract.
This has left many outside the organization scratching their
heads, wondering how we do it. The answer may be found in
our investment philosophy. Rather than attempting to act as
economists, we focus instead upon what we can do with a par-
ticular real estate investment itself. We feel that we get 50% of
the increase in NOI as a result of our construction department
and our value-added approach. We receive the other 50% as
a result of having a crack management team that can extract
every last dollar of financial performance out of an asset.
And finally, rather than following the herd to the latest, hot-
test, greatest city, we fly under the radar screen. As a result,
we don’t need a booming economy to lift all boats. We need
only stable, economic conditions in order to thrive. And that
enables us to focus on a lot of places overlooked by others. May
it always continue to be this way! “
I
n 2005, we made a dramatic shift in geography, changing
from the Southeast and Mid-Atlantic into markets further
west in Nashville, Columbus and Louisville to uncover
profitable opportunities. So it was in the spirit of our relent-
less pursuit of “what’s next” that Steve Berger, Jon Goodman
and Bob Dominy boarded a plane in January and headed to
Boca Raton for the annual National Multi-Housing Council
meetings. This gathering amounts to a virtual “Who’s Who”
in the multi-family investment community. It is a setting in
which deals involving hundreds of millions of dollars may be
overheard on couches and around coffee tables in practically
every lounge.
The multitude of ideas are diverse. And we’re pleased to
say that PRG is
loaded with capi-
tal, armed to the
teeth and hunt-
ing for bear as we
look to step up to
new levels. But
while we can’t tell
you which oppor-
tunity will work
out best yet, we
can promise you
that if you stay
tuned it will be an
exciting ride! ““
It Was the Best of Times...
NMHC Conference Sows
Seeds for Future Growth
Bob, Steve and Jon at NMHC
So Long to Assets
Fondly Remembered
Cheltenham Station, Philadelphia PA

4. B
y the time that the capital improvement program comes
to a close at the Woodcreek Apartments in Cary, N.C.,
it will be one where we got the most substantial bang
for our buck, and also one in which we made a critical change
to maximize market performance.
The community has undergone a $600,000 improvement
program since closing in June of ’05. This has included the
installation of many new washers and dryers, exterior repairs
to siding as well as cedar shake shingles, new dumpster enclo-
sures and roof replacement. It has also included concrete and
sidewalk repair, tennis court resurfacing, deck replacement
and new pool furniture.
But in the fall a major reallocation occurred when we decided
to breathe new life into the community through a complete
color change rather than install washers and dryers in all units.
The result has been a community that is 93% occupied with a
$22K positive variance at year end. At PRG, we spend money
in ways and in places that our customers can appreciate! “
I
tmaybeourfirstwinterinOhio,but
that certainly does not mean that
time is being wasted in Columbus!
Since closing on this community on
November 30th, there has been non-
stop activity with Bob Black,
Jon Goodman and our construc-
tion personnel preparing plans
to launch an aggressive capital
improvement schedule.
While some aspects of the
construction program may not
be feasible until spring, there’s
nothing to get in the way of good
planning! We’ve also found it
most opportune to bid projects
once plans are finalized. Plans
to finish the basements in the
287 townhomes have already
gone through several iterations,
and the bid process is well un-
derway to determine which will
be the winning scheme. We also have held
meetings with our architect at the property,
and new color selections have been chosen
for the exterior.
In addition to planning, there is some work
of a critical nature that can be done
regardless of the time of year. The
office renovations, including paint,
carpet, and a new entrance are already
complete. We also plan to begin the
basement renovations once
the plan has been bid and the
market tested.
Therealactionincludingtennis
court renovation, sports court
resurfacing, new pool deck and
the exterior paint project itself
may not kick off until April.
But we expect to come out of
the gate at a full sprint once
the weather finally clears. And
before the autumn leaves begin
tofall,wesuspectthePRGteam
willhaveshownthissubmarket
a thing or two about rising oc-
cupancy rates! “
I
n December, PRG wrapped up a capital program of grand
proportions at The Ambassador in Pittsburgh. The Am-
bassador consists of two neighboring buildings, one a
high rise and the second a mid-rise. For some time we had
been working on a project to completely renovate the five
story garage adjacent to the high rise. Beginning in April of
2005, those plans became a reality when the project kicked
off. It involved closing portions of one floor at a time as new
structural supports were put into place. And the result today
is a structurally sound garage that should last for many years
to come!
As if the $800,000 expensed on the garage was not enough,
there were several additional aspects to the improvement
program. In 2006, we plan to renovate all lobby areas and
hallways, and replace railroad ties on the hill between the
two buildings. We’re pleased to say that The Ambassador in
its present condition today looks nothing like the property we
began managing just a few years ago. And to the principals of
PRG, the asset was sufficiently attractive to become the new
general partner! “
Forest Park, Columbus, OH
Forest Park Set for Spring Thaw
Change at
Woodcreek Drives
Occupancy
The Ambassador
Lives Up To Its Name

5. The PRG Honor Roll
Fourth Quarter 2005
Top Gun Collections
October
Kristy kept her string of outstanding performances
intact. She has not been over $5.00 since May!
1. Kristy Leal San Pablo $2.02
2. Ali Smith-Watson Woodcreek $3.19
3. Sharon Hatley Hilton Village $3.28
November
Marilyn returned to first place, a position that she has
occupied more than any other PRG manager.
1. Marilyn Fields McKee Place $1.70
2. Jeremy Devlin Park Ridge $3.98
3. Hollie Robinson Linkhorn Bay $4.28
December
Someone apparently forgot to tell Kristy that December
is the hardest month to collect rent all year!
1. Kristy Leal San Pablo $0.48
2. Marilyn Fields McKee Place $1.73
3. Sharon Hatley Hilton Village $2.08
Show Me the Money!
1. Jennifer Hardy Linkhorn Bay $49,210
2. Patty Simpson Forest Park $38,237
3. Summer Davis Flagler Pointe $35,684
4. Maria Ferguson Willow Ridge $33,163
Wehadanumberofoutstandingfinancialperformances
in the 4th quarter of 2005. Jennifer Hardy, on the
strength of a fabulous month of December, walked off
with our most coveted award, “Show Me the Money,”
given for the best financial performance for the quarter.
But Patty Simpson from newly acquired Forest Park
burst onto the scene and exceeded her budget by $38K
to take 2nd place.
Among our other top performers, Summer Davis had
her best quarter of the year placing 3rd. And Maria
Ferguson had yet another great quarter in Charlotte, a
marketwitha9%vacancyrate.Twootherperformances
merit mentioning. At Lancaster Green, Meschelle
Sensenig-Roten topped her budget by $31,950. And in
Richmond, Jeff Fritz beat the Staples Mill budget by
$29,214. Taken in its entirety, it was a quarter worth
remembering!
Who Are Those Guys?!
1. Fred Jackson Alcoma 0.01
2. Ed Cousins Staples Mill 0.18
3. Javier Aguayo Honeytree 0.21
3. Tim Prahl McKee Place 0.21
In the fourth quarter, Fred Jackson from Alcoma
wrested first place away from his cross town rival, Tim
Prahl. Fred had an almost perfect score for work order
performance at 0.01, meaning that there is almost
never an outstanding work order at his property.
Ed Cousins from Staples Mill in Richmond had a great
quarter and placed second at 0.18. Third place was a
tie between Tim Prahl and Javier Aguayo. Javier is the
maintenance supervisor at Honeytree in Raleigh, and
has been a solid long term PRG employee.
The average score across all PRG communities was 1.11
for the quarter, meaning that the average work order
was done in 1.11 days. Call us today, and your request
will be completed by tomorrow!
Razzle Dazzle Leasing
October
Lindsay Savage took top honors for the month, even
with her responsibilities as LHB’s marketing director!
1. Lindsay Savage Linkhorn Bay 34
2. Emily Martin Linkhorn Bay 29
3. Demetria Richardson Flagler Pointe 23
November
Jennifer walked away with our highest leasing award
by a wide margin in Nov. But Latasha and Katherine
served notice that they intend to contend!
1. Jennifer Lumas Lancaster Green 21
2. Latasha Allen Staples Mill 16
3. Katherine Prewitt Park Ridge 15
December
In a squeaker, Katrina at LHB came out on top, with
two associates just one deposit behind. Meanwhile, our
latest FSU recruit Marissa almost stole the show!
1. Katrina Spiekerman Linkhorn Bay 16
2. Tabitha Deberry Linkhorn Bay 15
2. Max Walraven Chanticleer 15
2. Marissa Myers Flagler Pointe 15

6. The Cornerstone
Volume 6, Issue IV
PRG Real Estate Management
2701 East Luzerne Street Philadelphia, PA 19137
Phone . 215 . 744 . 1200 Fax . 215 . 744 . 4042
www.prgrealestate.com
Steven Berger, Principal
Jon Goodman, Principal
Robert Dominy, President
Dan Dougherty, Sr. VP and CFO
layout/design, Kathryn A. Simon
Successthrough
SuccessionPlanning
PRGVersustheREITs
“Turn out the lights, the party’s over!” That was
the refrain echoing from years past, formerly
sung by Dandy Don, as ABC closed its 25 year
run of Monday night football. That’s about how
long PRG has beaten the REITs. Our same store
performance increased 7.1% in 2005, and has
averaged 8.1% the past six years!
A
s we turn the page on the year 2005, PRG concluded a
six year stretch with an average NOI increase of 8.1%,
while companies we benchmark against have averaged
only 2.0%. We’ve accomplished this by putting marketing first,
and through a succession planning program that promotes our
best marketers into marketing-oriented management positions.
While many of our competitors grind away at administration,
promoting personnel out of marketing into back office desk
jobs, PRG’s managers never graduate out of marketing.
At PRG, a typical career path usually begins as a result of having
been selected through our college recruitment program. The
successful candidate will join our organization as a Market-
ing Representative/Manager in Training (MIT). This position
focuses heavily upon refining the inside sales process, and
learning how to effectively market a rental community. After
a year in this position, the successful MIT should be ready to
take charge of their first asset.
The benefits to PRG are immense. Our managers are mostly col-
lege educated and substantially more highly skilled than at our
competition. Second, since they have an attractive career path
with opportunities to surpass their peers, they tend to remain
at PRG for extended periods of time. Third, our system attracts
the most ambitious personnel in the industry. And fourth, as
PRG grows and expands, our personnel become managers of
new acquisitions, thereby bringing a high degree of skill and
familiarity with the PRG system to a new asset.
When PRG acquired Bavaria Apartments in Nashville last No-
vember, Beth McCarthy was promoted to Sr. Property Manager,
and Pam Williams took over as the manager at Hampton Chase.
When we closed on Lakecrest Apartments in Greenville, Betty
Anne Henson assumed the managerial role after a stint as MIT
at Willow Ridge. More recently, Sam Foster was promoted to
take over at Forest Park, while Caitlin Prokay graduated into
the manager position at The Ambassador.
PRG now owns and manages 29 assets, while 25 of our manag-
ers have been promoted from within. At PRG, we attract the
best and brightest, who then stay longer, work harder, and out
produce the competition by a wide margin. ““
I
n the fourth quarter PRG’s system of recognizing outstand-
ing performance through the Superstar Program continued
to unveil success stories. In fact, if one was to look for PRG
superstars the first two months of the quarter, the best place to
begin searching was in South Carolina!
In October, Christy Johnson, man-
ager of the Magnolia Townhomes
in Spartanburg was our winner. By
this time in the year, Christy was
well on her way to a year in which
her NOI would increase by 13.9%,
the fourth best in the company.
She also achieved a $29,871 posi-
tive year to date variance, and her
delinquency rate was a paltry $3.52
per unit, or 0.67%.
In November, our winner could
be found just south on Rte. 26 in
Columbia, SC. Karen Campbell,
the assistant manager at the Well-
spring Apartments, took over the
reins in the absence of her manager, racking up a 55% closing
ratio and recording a delinquency of only $7.89.
Our December winner was James Schultz, maintenance techni-
cian at Alcoma. Jim did nothing but plow snow for four straight
days in a Pittsburgh storm, saving his property $10K in the
process! “
Karen Campbell,
Wellspring Apts
PRG Superstars
ContinueToOutperform