Providence Capital Group, Inc. • 183 Calle Magdalena • Suite 100 • Encinitas, CA 92024 • Tel: 1.760.942.3333

Providence Capital Group, Inc. and its affiliates have been acquiring investment real estate since 1989.  The core investment criteria include the following:

Virtually all of the acquisitions of Providence Capital Group, Inc. and its affiliates have occurred in the Southern California area.  With over 30 years in the marketplace, we believe we understand not only the regional characteristics, but those which impact individual submarkets as well.  This, combined with the unique supply constrained characteristics of the region makes Southern California a unique and desirable investment location.

Pension funds, financial institutions, REIT’s and other public and private real estate investment funds tend to overbid assets, especially when market conditions are rising.  As a result, the prices paid for many large, Class “A” properties often defies logic as these entities bid prices above that supported by a marketplace.  Unlike many of these entities, Providence Capital Group, Inc. does not buy properties to just to “buy properties”.  Rather, we look at options request that best maximize returns while minimizing risk.  We are often contrarians.  During the downturns, when large institutional buyers eschew real estate investments, we are more likely to acquire these larger Type “A” buildings.  During real estate up cycles, we are more likely to focus on properties that are too small for a institutional buyer, but too large for Mom & Pop individual investors.  As a general rule, we do not get into bidding wars when acquiring real estate assets.  The acquisition of great “value added” real estate is only considered in unique circumstances, and generally on a low leveraged, low risk basis.  Ultimately, we rely upon long-term fundamental analysis in selecting our investment properties.

Nevertheless, our disciplined approach to acquiring real estate tends to make acquisitions at the peak of the market more difficult.  We believe in real estate cycles, and the volume of our acquisitions tends to vary naturally with the cycles.

Quality real estate situated in a quality location is likely to continue to outperform the market over time.  In fact, we still retain several of the assets acquired during our first year of operation.  We are, however, realists, and will seek to dispose a property which may have reached its peak, or where offers are received which are too good to be true.