Prescott Acquires Three Residential Developments in Greenwich, Connecticut For $50 Million

August 1, 2006 - Prescott Capital Management, LLC, the investment and asset management unit of The Prescott Group, LLC, announced today the acquisition of three residential townhouse developments totaling 34 units located in Greenwich, Connecticut, for approximately $50 million.

Currently operated as rental units, the properties will be converted to condominiums to capitalize on the continuing strength of the condominium market in Greenwich.

The portfolio includes Milbank Commons and Field Crest, consisting of 17 and 7 luxury townhomes respectively. The properties are located just blocks away from Greenwich Avenue, the town’s signature street with an abundance of upscale retailers and restaurants. Both are within walking distance of the Greenwich train station. The other property, Holly Hill, consists of 10 luxury townhomes located directly off West Putnam Avenue (U.S. Route 1).

Greenwich is one of the most affluent and desirable communities in the greater New York metropolitan region and the nation. It has an exceptional demographic profile that continues to draw affluent homebuyers from New York City because of its proximity and transportation infrastructure, a lower cost of doing business locally, and a substantial array of community amenities. Greenwich’s commercial sector, specifically, has experienced significant growth in the past 10 years as executives choose alternative office locations close to home.

Julianne Ward of Prudential Connecticut, the residential real estate brokerage firm that has been hired as the properties' lead marketing agent, said, "I am very excited to begin selling units at these three properties. There is currently strong demand for new product in the Greenwich residential market, and a lack of available supply. Therefore the three complexes should be well positioned to sell. Given the differing locations, amenities, and price points, each complex will capture a unique buyer and will not compete with the others."

About The Prescott Group, LLC

Founded in 1987, The Prescott Group, LLC is a New York-based real estate merchant banking firm that undertakes property investment, asset management, and investment banking activities throughout the U.S. as well as internationally. Prescott brings institutional real estate investments in high quality commercial real estate assets, including office, industrial, retail, mixed-use, hotel, and multi-family product types, to private clients including high net worth individuals, families, and private investment groups as well as to trusts, endowments, foundations, and institutional investors.

In 2004, the firm partnered with the Gordon P. Getty Family Trusts to offer expanded real estate investment opportunities to significant private investors. The Getty Trusts made a substantive investment in Prescott at the corporate level and also participate in real estate investment vehicles sponsored by Prescott.

Prescott Capital Management is the firm’s investment and asset management subsidiary, working closely with groups providing wealth management services to significant individual investors. It sponsors a series of real estate investment vehicles comprised of commercial properties located throughout the U.S.; manages investment funds targeted toward specific strategies and segments of the property markets; and originates and manages separate account investment programs focused on the U.S. and international property markets.