PROPERTY DESCRIPTION

ACQUISITION PROCESS
Panther and ComCapp acquired Enclave on May 1, 2014, for an all-in purchase price of $77,898 per unit. The Enclave was built in 2000 with 232 multifamily units located in Champions area of Houston, Texas. The plan for the property was to upgrade tohardwood-style flooring, new appliance packages, and upgraded common amenities. Original underwriting projected a 17.2% average annual return over a 5-year holding period.

PROPERTY HISTORY
The property performed well with average rents growing from $914 at acquisition to $1,108 by the end of 2021. The property was initially marketed for sale and under contract prior to COVID, but the buyer terminated the contract, lost significant earnest money which prompted ComCapp to refinance the loan and postpone a sale. At the time of the refi, Panther investors received the equivalent of 69% of their original investment which caught them up on their accrued, unpaid preferred return balances (30%) and reduced their capital account balances by 39% (30% + 39% = 69%).

The property continued to perform well, maintaining >95% occupancy and paying a 10% annualized coupon based on original investment (16% based on current capital balances).

EXECUTION AND SALE
We were previously under contract to sell Enclave in March 2020 for $24.3 million or $104,741 per door, but the Purchase and Sale Agreement was terminated by the buyer due to COVID. Panther ultimately received $318,000 in earnest money for the canceled traction and refinanced the loan on the property on November 1, 2020.

The property was ultimately remarketed at the end of the new loan lock out period and awarded to Lone Star Capital atthe agreed upon purchase price of $30.5 million which was equivalent to $131,466 per door and compared favorably to our original acquisition price of $77,898 per door on May 1, 2014, and the projected 5-year exit price of $104,897. In addition, there was an estimated $800,000 in cash on the balance sheet at closing that was part of the sale distribution.

Panther LP’s received a 18.5% average annual return or a 2.44x multiple on invested capital (MOIC) over the 7.8 year holding period. These returns compare to our original underwriting which projected a 17.2% average annual return over a 5 year holding period. Panther LP’s received an initial distribution equivalent to 1.13x of their original investment (having already received 1.31x, thus the total of 2.44X).

This sale exceeded our pro-forma projections providing a 2.44x multiple to Panther FW Investors and an annual average return on investment of 18.5% over the 7.5 year holding period.

PROPERTY DESCRIPTION

ACQUISITION PROCESS
Panther and ComCapp acquired Wilshire Place on February 16, 2016, for an all-in purchase price of $73,137 per unit. The property was built in 1982 and is located in northwest Houston along Highway 290. The plan for the property was to upgrade the common areas and a large percentage of the units in order to drive rent and NOI growth before ultimately selling the property in 5 years at a price of $92,551 per unit.

PROPERTY HISTORY
The property was able to pay distributions as planned, beginning in month 4 at a 6% couponin spite of a fire destroying one building shortly after takeover. That building was eventually replaced, enabling us to deliver newly upgraded units funded with insurance proceeds. Over the first 3.5 years of the hold period in-place rents grew from $764 to $917 (20%) while occupancy averaged 91-95%. Then, in late 2019, the property experienced significant tenant turnover and both the property manager and the regional manager overseeing the property were replaced. New management started in the spring of 2020 at the beginning of the COVID pandemic with occupancy at 83%. The new team worked diligently throughout the pandemic with a focus on collections, renewals, and new tenants. By the summer of 2020, occupancy began to improve, and rental rates began to slowly stabilize.

As a result of the disruption in late 2019, distributions at Wilshire Place were suspended since March 2020 and while operating results lag proforma, the momentum at the property improved in 2021.We witnessed significant investor interest for multifamily properties in the Houston area, where occupancy and rental growth across the MSA grew stronger than anticipated coming out of the pandemic.

EXECUTION AND SALE
Encouraged by the market strength and investor appetite in Houston, Panther and ComCapp marketed the property for sale on May 17, 2021, with a call for offers on June 23, 2021. The property received very strong interest and was ultimately awarded to El Ad Group, LTD for $104,478 per unit ($56,000,000). This price exceeded our original underwritten exit price of $92,251 per unit in year 5 but did not include a prepayment penalty (defeasance penalty) of $3.86 million ($7,207 per unit) for the early termination of the loan on the property, which offset some of the upside for this investment. At the time of sale, the property was 97% occupied and rental growth had resumed.

This sale exceeded our pro-forma projections providing a 2.0x multiple to Panther FW Investors and an annual average return on investment of 17.5% over the 5.7-year holding period.

PROPERTY DESCRIPTION
Panther and Knightvest acquired the Park Hill apartments on June 1, 2017 which marked our 13^th acquisition with Knightvest. The property is located in San Antonio, TX, across the street from the headquarters of USAA. The Property was constructed in 1983 and had been under the same ownership, Resource Residential, since 2008. The property had been well maintained but had not received value-add capital for upgraded interiors. The common areas and exterior needed improvements including painting, carpentry work and replacement of cedar siding with hardi-plank. The property had excellent value-add potential through rebranding, new signage, upgrading the unit interiors and common areas, and implementing better management.

ACQUISITION PROCESS
The property was put under contract on April 6, 2017. Knightvest financed the property through Freddie Mac for 7 years, 36 months of interest only at a 4.13% fixed interest rate. We closed on June 1, 2017. Panther provided approximately 79% of the total equity and budgeted an additional $3.4M for capital improvements.

PROPERTY HISTORY
Park Hill was a steady performer out of the gate, with modest rent growth in year one and distributions that commenced on schedule in December 2017 at a 5% annualized coupon rate. The initial plan called for 25% of units to be upgraded to Knightvest’s highest level Granite upgrade package, but the local market was not receptive to this solution, and Knightvest pivoted to a more modest Full upgrade package, which was well received. Over the ensuing 2 years, the property experienced solid rental growth and distributed in the 5-7% range. Then, with the onset of Covid, rent growth stalled and distributions were suspended from March 2020 through December 2021.

The San Antonio market began to heat up in late-2021 with strong rental growth, which enabled the property to resume distributions at 5% coupon rate. A second attempt at Quartz upgrades was successful and property rent growth expanded materially. Despite solid rental growth performance over the past 2 years, distributions were again suspended in November 2022 to fund improvements ($250,000) to the foundation in one of the buildings on the property. Distributions remained suspended through the sale of the property.

Over the course of the 6.8-year holding period, the property has averaged 95% occupancy and rents have increased from $775 at acquisition to $1,023 (+32%) today. At the time of sale, 276 units had been upgraded, or 96% of total units.

EXECUTION AND SALE
The property was marketed for sale in September 2023 with 111 confidentiality agreements signed and 13 property tours. Ultimately, 10 bidders placed offers on the property and the deal was awarded to 29^th Street Management. Knightvest and the buyer, 29th Street Management, executed the Purchase and Sale Agreement (PSA) on November 16th for the sale of the property. The buyer utilized their extension and officially closed today, February 21st, as per the contract. During the process, the buyer negotiated a price reduction for further foundation repairs which were needed. The final sales was below our original underwriting which projected an exit at the end of year 5 (June 2022) at $105,502 per unit. While the agreed upon price did not ultimately meet initial projections, the property is now 40 years old (1983 construction) and needs further capital improvements. We felt the best course of action was to sell the property at a profit to a well-capitalized buyer that can execute a comprehensive capital improvement strategy.

Based on the agreed upon price, Panther investors should expect to have received a 5.8% average annual return and a 1.40x multiple on invested capital (MOIC) over the 6.8-year holding period. Panther LP’s received 1.18x MOIC at closing with an additional 0.06x to be paid after the escrow settlement and final wind up. Investors had previously received distributions of 0.16x, bringing the total MOIC to 1.40x.

PROPERTY DESCRIPTION

ACQUISITION PROCESS
Panther and Allen Harrison Company acquired The Stations at Mason Creek on September 13, 2017, for an all-in purchase price of $125,719 per unit. The property was built in 2001 and is located directly north of I-10 and east of Highway 99 in Katy.  The plan for the property was to upgrade a large percentage of the unit interiors to Allen Harrison’s Platinum upgrade package, improve the common areas, and drive additional income through addition of 75 new carports and expansion of patio areas on ground floor units.

PROPERTY HISTORY
The property commenced paying distributions after the first full quarter of ownership (3 months ahead of schedule) and has been a consistent payer over the hold period with the exception of one quarter (1st quarter 2020, due to COVID). Over the first 3.75 years of the hold period, Allen Harrison upgraded 139 units (48%). In-place rents have grown from $974 to $1,044 (7%) while occupancy averaged 91-97%. At the end of 2020, Allen Harrison and Panther decided to hire a new 3rd party property manager, ZRS (replacing Internacional), with a plan to more aggressively market the property online and to drive rent growth through emphasis on rent increases at renewal. Since taking over in January 2021, ZRS has improved the common areas, successfully increased renewal premiums by low to mid-teens rates, and significantly reduced outstanding delinquencies.

Beginning in early 2021, market fundamentals in the Katy submarket began improving, consistent with those of the greater Houston market. Since then, we have witnessed significant investor interest for multifamily properties in Houston. In July 2021, we received an unsolicited bid for the property in the amount of $41,000,000 or $151,000 per unit. This bid exceeded our planned underwritten 5-year exit price of $149,236 per unit. Encouraged by the unsolicited offer and the growing investor appetite in Houston, Panther and Allen Harrison marketed the property for sale on August 19, 2021, with a call for offers on September 21, 2021. The property received very strong interest and was ultimately awarded to Westmount Realty for $170,447 per unit ($49,600,000).

EXECUTION AND SALE
Panther LP’s received an 16.3% average annual return or a 1.67x multiple on invested capital (MOIC) over the 4.13-year holding period. These returns compare to our original underwriting which projected a +/-15% average annual return over a 5-year holding period. At closing, Panther LP’s received a distribution equivalent to 1.46x of their original investment (previous distributions amount to 0.21x original investment – thus the total of 1.67x).

This sale exceeded our pro-forma projections providing a 1.67x multiple to Panther FW Investors and an annual average return on investment of 16.3% over the 4.13-year holding period.

PROPERTY DESCRIPTION
Cottonwood Creek Apartments (renamed 301 Greenville) is a 200-unit, Class B value-add opportunity in an “A” location. It is a two-story, garden-style community originally built in 1984. It is adjacent to the Allen High School campus and across the street from the Allen Freshman Center. All unit interiors were essentially untouched over the seller’s ownership period. At acquisition, the property was 96% occupied and offered tremendous potential for rental rate growth through an extensive interior value-add program and raising current rents to current market rates.

ACQUISITION PROCESS
Panther and Knightvest purchased the Cottonwood Creek Apartments on July 25, 2018, for an all-in price of $116,000 per unit. The Property had been owned for about 20+ years by two individuals, one lawyer and one physician. There was tremendous upside in management and operations at Cottonwood Creek. The previous owners had operated with an occupancy driven mentality, meaning, keep occupancy high without raising rents. Water and other utilities were not billed back to residents offering an additional income source. The property required deferred maintenance to be addressed including wood replacement, paint, lighting, pool furniture and slight repairs to pool tile and fencing, landscaping, and signage. There were plans for the addition of a new Clubhouse/Leasing Office to be located at the front entrance of the property on Greenville Avenue which was completed in early 2021. The existing office was converted into a fitness center as planned.

PROPERTY HISTORY
The original strategy called for the largest per unit capital improvement plan ($23,573 per unit) in the history of the Panther portfolio. Over the course of the 2.66 year holding period, Knightvest upgraded 124 units, or 62% of total units to its highest-level Quartz upgrade program. During this period, the property consistently ranked number one within the Knightvest portfolio for upgrade premiums, regularly surpassing $300 per unit or 30%. On March 25, 2020, we refinanced the property and were able to catch up accrued, unpaid preferred return balances while also returning approximately 20% of original capital. With the proceeds from the new loan, we were able to build a new Leasing Office along Greenville Avenue which substantially enhanced the curb appeal (and leasing traffic) of the property.

EXECUTION AND SALE
301 Greenville was marketed for sale in March 2021 and received a pre-emptive offer.Due to the fact that the marketing process had not been concluded, Knightvest and Panther countered at $33M ($165,000 per door) with 2% required earnest monies, of which $330,000 was non-refundable, and the remaining $330,000 became non-refundable upon the expiration of the 30-day due diligence period.

This sale exceeded our pro-forma projections providing a 1.69 multiple to Panther FW Investors and an annual average return on investment of 25.00% over the 2.66 year holding period.

PROPERTY DESCRIPTION
The Horizons at Fossil Creek represented an attractive value-add investment opportunity within the Northeast Fort Worth submarket. The Property is a high quality, very well-maintained, Class B+ garden-style community originally constructed in 1998 by the Simpson Family (the patriarch of Grand Peaks). The asset sits on approximately 25 acres and consists of 56 garden style buildings with tile roofs. The Property offered potential for rental rate growth through an interior value-add program-upgrading the common areas and interiors to match its location and setting. The Property average unit size is 996 square feet consisting mainly of larger 2 and 3- bedroom units (about 66% of unit mix). It is located adjacent to The Golf Club at Fossil Creek and features 80 units with attached garages overlooking the golf course and an additional 134 detached garage buildings. Horizons includes a clubhouse/leasing office, 2 swimming pools, 24-hour fitness center, bark park, and golf putting green which is part of the green space to be repurposed.

ACQUISITION PROCESS
The purchase price of $57,050,000 ($135,833 per unit) was considered within market pricing for this vintage property and location in the Northeast submarket of Fort Worth. The seller, Grand Peaks Properties (based in Denver, CO), took the property out to market in May 2018. While several offers were received, the seller requested the broker contact Knightvest directly. Knightvest had purchased one other property from Grand Peaks. The sales price was agreed upon even though it does not represent the highest offer received during marketing. We closed on October 30, 2018.

PROPERTY HISTORY
Panther and Knightvest acquired the Fossil Creek Apartments on October 30, 2018, for an all-in purchase price of $150,536 per unit. The property is located in north Fort Worth just east of I-35 and along Fossil Creek Golf Course where its central location and ease of access to both downtown Fort Worth and Alliance combined with its large floor plans and townhome style have made it an ideal location for renters. The operating plan for the investment called for significant enhancement to both the interior units and exterior of the property, including a renovated clubhouse, a new fitness center and coffee bar, a new outdoor resident entertainment center, and new cabanas at the 2 pools on the property. These common area improvements were completed in November 2019. Knightvest has also completed 366 interior upgrades to date, representing 87% of units. The total capital budget for this investment was $8.9 million, and during the 4.2-year holding period, in-place rents have grown $297, from $1,186 at acquisition to $1,483 today. The property has made uninterrupted distribution payments since month 5 of the holding period (March 2019) at a 5-6% annualized coupon rate.

EXECUTION AND SALE
The property was originally marketed for sale in September with a call for offers in late-October. The initial round of offers were encouraging, with 6 bidders at or near $80,000,000 ($190,476 per unit), however, during the best and final offer process in early-November, four of the bidders walked away and the remaining two bidders reduced their offers to $75,000,000. We and Knightvest felt these offers did not adequately value the property’s strategic positioning and future earnings potential, and thus decided to revisit the sale process at a future date when more conducive market conditions prevailed. Then, in mid-November, there was renewed interest from one of the original bidders on the property. The all cash buyer agreed to purchase the property for $82,500,000 ($196,429 per unit). After we agreed to a $200,000 seller credit for foundation repairs, the PSA was signed on December 21, 2022, and closed on December 30, 2022.

The $82,300,000 sale price ($195,952 per unit) compared favorably to our original projected exit 5-year price of $188,241 per unit (October 2023).

Panther LP’s received a 15.0% average annual return and a 1.63x multiple on invested capital (MOIC) over the 4.2-year holding period. These returns compared to original underwriting which projected a 15% average annual return over 5 years. At closing, Panther LP’s received a distribution equivalent to 1.44x of their original investment (previous distributions amount to 0.19x of original investment), thus the total of 1.63x.