Property Description
Kensington Apartments consisted of 256 units, located in Irving, Texas and was built in 1980. Unit sizes averaged 853 square feet. Construction is two story buildings with a combination of brick and stucco exterior featuring hardi plank siding with pitched, composition shingle roofs. All units are individually metered for electricity, have individual HVAC units, and feature washer and dryer connections.

Acquisition Process
The property was put under contract June 13, 2014, by Knightvest Capital of Dallas who has been Panther’s partner in a majority of our multifamily acquisitions. Knightvest provides onsite property management services and invests alongside Panther. Panther FW Investments provided 76.92% of the acquisition equity. Knightvest obtains other third party equity and assumes 100% responsibility for acquisition financing including any recourse required by the lender. Panther FW Investments and its’ investors provide no guaranties on the debt.

Property History
Panther and Knightvest closed the acquisition on 10/1/2014. The portfolio was 96% occupied at time of purchase and had average in place rents of $686. The business plan included extensive interior capital improvements; plus exterior improvements including wood replacement, clubhouse remodel, pool renovations, and asphalt repairs. This was a value-add project scheduled to take approximately 36 months.

This investment projected 10% annual distributions to investors starting month 7; however, we started distributions early at 5% and reached 12% by month 21 and continued through time of sale in month 29.

Execution and Sale
The property sold in March 2017 (month 29, ahead of projected hold of 36 months) and achieved economic projections.

This sale met our pro-forma projections providing a 1.51 multiple to Panther FW Investors an annual average return on investment of approximately 21.13%.

PROPERTY DESCRIPTION
Oaks of Cypress Station Apartments, renamed to Copper Lodge, consisted of 294 units, located in North Houston, Texas and was built in 1978. Unit sizes averaged 835 square feet. Buildings were two story construction with a combination of wood framing, stucco, and cedar siding. The buildings feature pitched, composition shingled roofs. All units were individually metered for electricity, had individual HVAC units, and feature washer and dryer connections.

ACQUISITION PROCESS
Knightvest’s Houston Director of Acquisitions, Sean Clancy, pursued this property for 6 months prior to purchase. Capital expenditures had been inadequate which was evident in the poor condition of the exterior. Furthermore, the unit interiors feature dated flooring, fixtures, appliances, cabinets and countertops. The lack of capital reinvestment in the property was evident in the property’s rental rates, which were below average in the area, leaving room to implement a value-add program by upgrading the common areas, exteriors, and interiors to match its location and setting. The property was put under contract June 13, 2014, by Knightvest Capital of Dallas who has been Panther’s partner in a majority of our multifamily acquisitions. Panther FW Investments provided 90.00% of the acquisition total equity of $5,000,000.

PROPERTY HISTORY
Panther and Knightvest closed the acquisition on 1/8/2015. The portfolio was 89% occupied at time of purchase and had average in place rents of $674. The business plan included extensive interior and exterior capital improvements replacing cedar plank with hardi plank, exterior paint, new roofs, clubhouse remodel, pool renovations, landscaping improvements, covered parking repairs, and asphalt repairs. This was a value-add project with an anticipated hold period of 3 to 5 years.

EXECUTION AND SALE
The property sold in April 2018 exceeding economic projections.

This sale slightly exceeded our pro-forma projections providing a 1.77 multiple to Panther FW Investors and an annual average return on investment of approximately 20.62%.

PROPERTY DESCRIPTION
River Ranch Apartments, renamed to Chisolm Ranch, consisted of 272 units, located in Fort Worth, Texas (southeast quadrant of I-20 and River Valley Blvd adjacent to Hulen Mall in Southwest Fort Worth). River Ranch was constructed in 1980, and is comprised of 18 two story buildings situated on a 12-acre site (24 units per acre). The building exteriors featured brick and hardi plank siding. A roof replacement was included for all buildings in the capital expenditures. The unit interiors feature 100% full size washer/dryer connections with washer and dryer appliances furnished, fireplaces in all units, and vaulted ceilings on the top floors.

ACQUISITION PROCESS
Knightvest was awarded the purchase off-market from a long-term owner (20 years). The unit interiors, common areas and landscaping were very dated and in significant need of modernizing. The dated interiors and tired common areas were evident in the Property’s rental rates, which lagged behind submarket rents in competing properties. Current average effective rents at time of purchase at River Ranch were $706 ($0.78 PSF) with submarket average market rent of $850 ($1.09 PSF). The $100 market rent gap combined with average additional rent premiums of $150-200 for upgrades were targeted for year 4 pro-forma rents. The property was put under contract July 13, 2015. Panther FW Investments provided 79.00% of the acquisition equity of $7,050,000.

PROPERTY HISTORY
Panther and Knightvest closed the acquisition on 9/25/2015. The portfolio was 93% occupied at time of purchase. The business plan included extensive interior upgrades including new stainless-steel appliances, granite countertops and tile backsplash, 6” baseboards, front door replacements, upgraded fixtures, lighting, and cabinet fronts. Due to the success of the granite upgrades, an additional upgrade to Quartz countertops were tested and well received achieving as high as a $350 increase over prior rate. The exterior capital improvements included exterior paint, new roofs, clubhouse remodel, pool renovations, landscaping improvements, exterior windows, replace patio rails and balcony surrounds, and asphalt repairs. This was a value-add project with an anticipated hold period of 3 to 5 years.

EXECUTION AND SALE
As mentioned, the average in place rents at acquisition were $706 and at time of sale the property was achieving average in place rents of $1,042, a 48% increase. The latest Quartz upgrades at time of sale were averaging approximately a 30% premium over the prior lease rate. The property sold in June 2019 surpassing economic projections.

This sale exceeded our pro-forma projections providing a 1.76 multiple to Panther FW Investors and an annual average return on investment of 20.42%.

PROPERTY DESCRIPTION
Regal Commons Apartments, renamed to Equinox, comprised of 444 units, located in Arlington, Texas directly across from General Motors Arlington Assembly Plant which was undergoing a $1.3 billion expansion at time of purchase. Regal Commons was constructed in 1966 and was comprised of 25 two story buildings situated on almost 20 acres. The building exteriors featured brick and were in overall average condition. The property was not typical for its vintage in that the roofs were pitched, individual HVAC units and each unit had an individual hot water heater.

ACQUISITION PROCESS
Knightvest was successful in contracting for the subject property on March 21, 2016. The property’s rental rates lagged behind market rent competition at time of purchase, current average effective rents were $673 ($0.87 PSF) with submarket average market rent of $822 ($1.05 PSF). The $149 market rent gap combined with average additional rent premiums of $75-$125 for upgrades provided an opportunity for achieving our targeted $1.23 PSF pro-forma rents within 5 years. The property had excellent value-add potential through completion of upgrading unit interiors, adding some washer and dryer connections in selected units, completing additional exterior improvements like paint and landscaping, along with implementing a new management team.

PROPERTY HISTORY
Panther and Knightvest closed the acquisition on 4/28/2016. The portfolio was 96% occupied at time of purchase. The business plan included extensive interior upgrades including new black appliances, countertop resurfacing, 6” baseboards, front door replacements, upgraded fixtures, lighting, cabinet fronts, and installing water saving devices. The exterior capital improvements included exterior paint, roof replacements as required, clubhouse remodel, pool renovations, landscaping improvements, electrical breaker replacement, replaced patio rails and balcony surrounds, and parking lot repairs. Knightvest’s Granite upgrades achieved up to a $350 premium over prior lease rate. This was a value-add project with an anticipated hold period of 3 to 5 years.

EXECUTION AND SALE
The business plan was successful with average rents increasing from $673 to $892 over the three-year hold period. The property sold in April 2019 surpassing economic projections.

This sale slightly exceeded our pro-forma projections providing a 1.69 multiple to Panther FW Investors and an annual average return on investment of approximately 22.68%.

PROPERTY DESCRIPTION
This portfolio consists of 7 Class B institutional quality industrial assets containing 459,585 square feet built between years 1982-1997. The assets are situated in the North and Northeast industrial markets, near the intersection of I-35, the main north/south artery of Austin, and State Highway 183.

ACQUISITION PROCESS
The portfolio was acquired in July 2016. TA Associates, a Boston based company, was the seller. The portfolio had some near-term tenant rollover creating the value add opportunity for Panther.

PROPERTY HISTORY
The property was purchased in July 2016. As of the closing date, the project was 86% leased with 27 national, regional, and local tenants. The Portfolio was purchased with a going in cap rate of 6.33%. The current annual rate for the distribution space in the portfolio ranged from $4.40/SF to $7.20 SF NNN and flex space ranges from $8.50-$13.20 NNN. These were below market rates in the submarkets for comparable assets. FEMA had vacated a space of 50,000 SF and another 30,000 SF was vacating by year end 2016.

On August 25, 2017, Hurricane Harvey hit Houston and the coastline, flooding Houston and surrounding areas. FEMA released 90,000 square feet in Austin taking the occupancy back up to 98%, an attractive rent for a short-term, 18-month lease.

EXECUTION AND SALE
Panther received a Broker Opinion of Value which provided a potential sales price estimate between $48.7M and $51.9M. The property was officially marketed beginning October 2017 with over 95 Confidentiality Agreements signed. Call for offers was in November. Best and Final call was made in late November 21st. The property closed in March 2018.

Panther FW investors achieved an annual average return on their investment of 18.61% in 22 months.

PROPERTY DESCRIPTION
Panther provided approximately 56.64% of the total equity for the purchase of Gramercy Center which consisted of two office buildings totaling 256,357 square feet. The office complex is situated along the Dallas North Tollway. The asset enjoys a high parking ratio of 4.6:1000, which can be expanded to 6.0:1000, and offers excellent visibility with access to and from the Dallas North Tollway and President George Bush Turnpike/State Highway 190. Combined with close proximity to a wide range of amenities, including adjacent restaurants, retail, and a variety of residential options, Gramercy Center provides its tenants a convenient location to assist in attracting and retaining best-in-class employees. The property offers highly efficient floor plates with available suite sizes ranging from 5,000-30,000 sf, ideal for large corporate users.

ACQUISITION PROCESS
ATCAP was awarded this office portfolio on April 21, 2017. CapRidge Partners, an Austin based company, was the seller. CapRidge purchased the property in 2013 for $121/SF.  Unfortunately, three months into ownership Wingspan defaulted on their lease and vacated 130,000 total square feet. CapRidge is out of funds to release space i.e. tenant improvements and lease commissions.

The portfolio was 57% occupied when contract was signed and is 62% occupied today.

ATCAP had a “tenant in tow” (a signed lease) with a viable tenant for 50K SF to occupy November 1, 2018, at an average of $24.50/sf plus E. There was a 30-day termination clause which allows ATCAP (the landlord and our General Partner) to lease their space prior to August 2018, and terminate the lease, should there be an opportunity to lease their space sooner.

PROPERTY HISTORY
Occupancy peaked at 98.43% when the tenant in tow commenced their lease November 1st for 50,970 SF in North building for 5 years. ATCAP also signed AIS for a 7-year term which commenced July 1, 2018. Distributions commenced at a 10% coupon for 3rd quarter 2018.

The property was launched for sale at 98% leased with average in place rents of $23.89 per square foot. We awarded the deal but during the Purchase and Sale Agreement correspondence, the buyer went dark, and sale was dropped. There were no other legitimate offers at the time and the decision was made to continue operating the property, work to renew two large tenants, and pursue a capital event (i.e. sale or refinance).

ATCAP completed the refinancing of Gramercy which reduced interest expense, extended the maturity date 4 years and enabled a one-time distribution equivalent to 14.46% of invested capital (investor capital accounts were reduced by 3.16%).

Occupancy remained steady through 4Q 2019 and ended year at 95.40%. Distributions in 2019 were at a 14% coupon rate. In 2020, the Global pandemic (COVID-19) began and dominated 2020 with CDC recommendations for quarantine and shutdown during the peak of outbreaks. This followed with travel ban, billions of dollars in federal funding to fight the disease’s spread, and government relief checks issued. Panther and ATCAP opted to suspend distributions during Covid. At this point investors have received distributions totaling 33% of original investment.

 FINAL OUTCOME
Post covid, occupancy continued to decline as companies implemented work from home platform or a hybrid version and the property ended at 64.5% occupied at the end of 2022. Unfortunately, the lender would not work with ATCAP in negotiating an extension as the loan expired in June 2023. The property’s loan was ultimately sold to a third-party and a deed-in-lieu of foreclosure was finalized in September, 2023.

Panther LP’s ultimately received 0.40x their original investment marking Panther’s first and only partial loss of limited partners original equity.