PROPERTY DESCRIPTION

ACQUISITION PROCESS
We acquired Arlington Industrial with Fort Capital in an off-market transaction on November 21, 2019, for $23,500,000 ($51.61 PSF), or an all-in acquisition price of $61.21 PSF. Our plan was to grow its below market rents and maintain occupancy (96% at takeover) with a planned disposition at the end of year 5 at $81.49 PSF (6.25% cap rate). This investment was underwritten to deliver a 16-20% average annual return and a 1.85x multiple on invested capital (MOIC).

PROPERTY HISTORY
Panther, with the sponsor, Fort Capital, acquiredthe 22.5-acre, 455,331 square-foot infill business park located within the core of Great Southwest submarket in DFW, TX. Within GSW, the property is located in the Lower GSW area (south of Interstate 30) where vacancy rates were 2.7% with only 155,000 SF of current construction. Lower GSW sits directly east acrossSH 360 from the Arlington Entertainment District which includes Six Flags Over Texas, Texas Live!, Globe Life Park (Texas Rangers) and AT&T Stadium (Dallas Cowboys). The Portfolio consisted of ten buildings with a total of 20 units ranging from 5,520 SF to 75,545 SF, and averaging 22,757 SF of core light industrial space situated on 20 contiguous acres of land (and 2.5 additional acres one block to the west). This submarket is one of the highest performing submarkets in DFW as evidenced by the historically low vacancy of 3.7%. Total square footage is 455,331.Then, in mid-2020, we were able to acquire a 35,000 SF neighboring property, Avenue E Industrial, for $53.57 PSF, using additional loan proceeds from our lender. This acquisition brought our total square footage up to 489,742 SF.

EXECUTION AND SALE
In early March of 2021 we received a BOV from Jones Lang LaSalle (JLL) which estimated that our Arlington Industrial Portfolio (which also included an additional Panther/Fort Capital property: 109th Street Industrial), was worth an estimated $84 PSF at the midpoint estimate of the BOV. The dramatic increase in price in such a condensed period was the result of a large amount of institutional capital looking to invest in the DFW industrial market combined with a limited amount of supply on the market and material absorption. The bid of $92.06 PSF after a 1.66-year holding period exceeded Panther’s original underwriting which called for a sale at the end of year 5 at $81.49 PSF.

This sale exceeded our pro-forma projections providing a 1.66 multiple to Panther FW Investors and an annual average return on investment of 40.14% over the 1.66 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
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.

PROPERTY DESCRIPTION

ACQUISITION PROCESS
Panther and Knightvest acquired The MarQ at 1st Apartments on May 29, 2019, for an all-in purchase price of $146,341 per unit. The property waslocated in the Tempe submarket of the Phoenix MSA, adjacent to Arizona State’s main campus and Tempe Town Lake, a recreational and entertainment hub. The property was built in 1985 and required significant capital investment at the time of acquisition to bring it up to today’s standards for the market. The plan was to upgrade both the interiors and the common areas at the property, narrow the market rent gap, and to ultimately sell the property for $225,101 per unit in 5 years (2024).

PROPERTY HISTORY
The Property had been owned by the seller since 2016 and had been well maintained; however, there was a substantial opportunity for value-add with this property given the strength of its location combined with a significant rent gap of over $800 for nearby properties with new construction. The property was unique for the area given its low density (only 22 units per acre vs 65 units per acre for new construction).This was a true differentiator as Tempe continues to densify with migration to the area. Knightvest’s plan was to enhance the common areas, amenities, pool areas and improve the interior renovations by adding its highest-level Quartz upgrade package (quartz countertops, stainless steel appliances, new cabinet door fronts and new hardware/fixtures) to all of the classic units at the property (45 units) while also making intermediate upgrades (including washer dryer connections and appliances in all units) to an additional 40 units. About 77% of the units were upgraded. At the time of sale, the property was 95% occupied with average rents of $1,168, a $226 increase over takeover rents.

EXECUTION AND SALE
The property was marketed for sale on May 20, 2021, with a call for offers on June 22, 2021. The property had very strong interest and was ultimately awarded to the buyer for $280,000 per unit ($46 million)which compared favorably to our underwritten exit price of $225,101 in year 5. Panther LP’s received a 40% average annual return and a 1.96x multiple on invested capital over the 2.4-year holding period. These returns compare favorably to our original underwriting which projected a 15% average annual return and a 1.75x multiple over a 5-year holding period.

This sale exceeded our pro-forma projections providing a 1.96x multiple to Panther FW Investors and an annual average return on investment of 40.45% over the 2.33 year holding period.

PROPERTY DESCRIPTION

ACQUISITION PROCESS
Panther and Knightvest acquired The Indigo Palms Apartments on November 5, 2019, for an all-in purchase price of $194,542 per unit. The property was located in the Downtown Phoenix submarket of the Phoenix MSA in a central location near Sky Harbor Airport and Downtown Phoenix with quick access to major thoroughfares including Interstate10 and Highway 202. The property was built in 2000 and while the common areas had been well maintained, interior upgrades had not been undertaken. The operating plan for the property was to make modest renovations to the common areas with heavy renovations of the interiors, thereby narrowing the market rent gap, and ultimately to sell the property for $238,245 per unit in 5 years (2024).

PROPERTY HISTORY
The Property had been owned by a southern California based owner, since 2013. This was their only Arizona property and while the property had been well maintained; the owner had not re-invested capital in the interiors of the units and as a result, failed to fully participate in Phoenix’s explosive rental growth. There was opportunity for value-add with this property given its central location combined with a significant rent gap of ~$260 for nearby garden style properties and $500-600 for new development. The capital budget for this investment was $6,784,000 ($15,704 per unit) and included adding windows, removing walls in the leasing center in order to brighten its appearance, and renovating the fitness center with a new paint scheme and equipment. The building exterior was painted and cabanas with TVs were installed at the main swimming pool. At the time of sale the property was 98% occupied and about 250 of the unit interior upgrades were completed. These upgrades increased in-place rents from $1,041 at acquisition to $1,251 (+20%) in May 2021 (1.5 years). A diligent focus on expenses allowed the property to exceed its operating income projections which allowed us to make distributions earlier than anticipated at a higher percentage. The property was paying 12% annualized coupon in year 2 prior to sale vs our original plan of 7%.

EXECUTION AND SALE
The property was marketed for sale on May 27, 2021, with a call for offers on June 24, 2021. The property received very strong interest from both institutions and local groups and was ultimately awarded to a Dallas based buyer for $296,000 per unit ($127,875,000), far surpassing our underwritten year 5 exit price of $238,245. Panther LP’s received a 47.51% average annual return or a 1.91x multiple on invested capital (MOIC) over the 1.9-year holding period. These returns compare favorable to our original underwriting of a 15%-17% average annual return and a 1.79x multiple over a 5-year holding period.

This sale exceeded our pro-forma projections providing a 1.91x multiple to Panther FW Investors and an annual average return on investment of 46.72% over the 23-month holding period.