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.

Property Description

Panther and Knightvest purchased Capital Place (renamed Mason Oliver) on June 23, 2020, which marked our 22nd acquisition with Knightvest. It is a midrise wrap apartment community completed in 2015 with 292 units or 375,119 net rentable square feet (SF) on two separate city blocks (11 Capital Place and 12 Capital Place are the current respective names). The property is based in the Downtown Phoenix submarket of the Phoenix MSA in central location near Sky Harbor Airport and Downtown Phoenix with easy access to major thoroughfares including Interstate-10 and Highway 202. Capital Place consists of two mid-rise buildings built in 2015 and separated by one city block. The unit mix consists of 50 (17%) studio apartments, 172 (59%) one-bedroom apartments, 62 (21%) two-bedroom apartments and 8 (3%) three-bedroom apartments. The average unit size is 827 SF with studios averaging 615 SF, 1 BRs at 767 SF, 2 BR’s at 1,095 and 3 BRs at 1,324 SF. The property has structured parking on the ground floor with a total of 327 parking spaces, or 1.1 per unit (tenants pay $40/mo. for a parking spot). Key amenities at each property include fitness centers, swimming pools, resident clubhouses and business centers (11 Capital Place also includes a conference room).

Acquisition Process

Panther and Knightvest acquired Capital Place Apartments on June 23, 2020, for an all-in purchase price of $220,274 per unit. The business plan included modest changes to common areas, reposition to a better tenant profile, and stabilizing the community. This was the first property to implement the Knightvest Quartz 2.0 interior upgrade program which included quartz countertops with waterfall edges, permanent quartz kitchen islands, and custom back splash thereby narrowing the market rent gap and ultimately projected to sell the property for $277,820 per unit in 5 years (2025).

Knightvest secured debt of $38.12 million (59% loan-to-cost) with a floating interest rate of 30-day LIBOR + 280 basis points (3.00% at acquisition) with a 10-year term, interest only for 5 years.

Property History

At the time of purchase, the Phoenix Metro area had added 80,000 new jobs from June 2018 to June 2019, which ranked #2 nationally. Phoenix also ranked 4th nationally for projected population growth for the period 2016 to 2026 at 118,000 new residents annually and was #1 in the nation for rent growth in 2019 at 8.1%. This market success brought several developers and new apartment supply to the Downtown area with ~1,200 units delivered in 2024, and ten high-rise mixed-use buildings expected to open in 2025. As such the average rents at the property have remained flat since 2023. Looking ahead, Phoenix, and more specifically, the Downtown Phoenix submarket, are projected to be some of the last markets to stabilize as they absorb a larger amount of new supply than other markets throughout the US.

Capital Place started paying distributions as projected at 5% in October 2020 and increased to 7% through 2022. Distributions were suspended to accrue funds for our 2-year interest rate cap extension in June 2023. Over the hold period the average in-place rents grew +$302 ($1,261 at acquisition vs. $1,563 today) and our average occupancy was 93%. Net operating income improved 24.4% through 2024 ($2.5M at acquisition vs $3.1M in 2024).

Execution and Sale

The property was sold for a 4.85% cap rate on trailing 12-month net operating income. Panther LP’s will receive an 0.4% average annual return or a 1.02x multiple on invested capital (MOIC) over the 5.1-year holding period. These returns compare to our original underwriting which projected a +/-15% average annual return and a 1.73x multiple over a 5-year holding period. At closing, Panther LP’s received a distribution equivalent to 0.795x of their original investment. Previous distributions received to date were 0.142x original investment plus there was a holdback at closing of 0.085x, for a total investor MOIC of 1.02x.

Property Description

Panther and Knightvest acquired the Edgewater at Lake Lynn Apartments (renamed Retreat at Lake Lynn) on September 24, 2020, which marked our 23rd acquisition with Knightvest. The 344-unit, Class B-, garden style property is located in Raleigh, NC. Edgewater is situated on a sprawling 36-acre property overlooking Lake Lynn in Raleigh, NC. Lake Lynn is a 56-acre lake surrounded by a 2.8-mile jogging and biking trail that is very popular among local outdoor enthusiasts.The Property was constructed in 1986 and had been under the same ownership, Abacus Capital Group (NYC), since 2017. The property had been well maintained but they did not implement an interior upgrade program which allowed Knightvest to execute their highest-level Quartz upgrade package quartz countertops, new cabinet doors, a superior fixture package, new tile tub surrounds, kitchen backsplash, baseboards & doors. We also plan to upgrade some units with painted cabinet doors, kitchen backsplash, new baseboards & doors, and new tub tile surrounds. The business plan also includeda complete renovation of the leasing and fitness centers, new pool amenities including cabanas, grilling stations, and TVs, and a repurpose of the existing tennis courts into a resident hangout pavilion.

Acquisition Process

Knightvest acquired the property amid the Covid-19 pandemic, on September 24, 2020, off market at a 7% discount to pre-Covid pricing for $148,256 per unit. At the time of acquisition, the rent gap was approximately $300-$400 vs nearby properties of similar vintage and quality. The original debt of $38.5M (66% loan to cost) was secured with Prudential for a 3+1+1 lease term at 300 bps + 30-day LIBOR or an all in rate of 3.25%.

Property History

Edgewater was a strong performer out of the gate, with in-place rents growing by over 10% in the first year of ownership ($1,003 in September 2020 to $1,105 in September 2021) while maintaining a strong occupancy of 95%. The initial performance at the property enabled distributions to begin ahead of schedule in December 2020 at a 6% coupon rate vs underwriting of 5%. The Raleigh market was receptive to the upgrade strategy at the property and rents continued expanding, even as market growth slowed in 2023 and 2024.

The original loan on the property had a floating interest rate, and in March 2023 we refinanced that loan into a new, fixed interest rate loan (5.01%) to mitigate interest rate risk. The new loan extended the maturity date to April 2028 and added an additional year of interest only payments. With the proceeds from the refi, we made a one-time distribution equivalent to 12.5% of original capital, and reserved funds to build out a bulk Wi-Fi platform and to upgrade an additional 100-unit interiors at the property. Since then, we have upgraded 57 of the 100 planned unit interiors and have rolled out the Wi-Fi program, which has added $262,000 to annual income. In total, we have renovated 80% of units at the property and have expanded in-place rents by 40% since inception ($1,003 to $1,411). Net operating income (NOI) for the property has expanded from $2.33 million to $3.53 million in 2024, or growth of 51%.

Having already achieved the majority of the original business plan at the property as we approach the end of our underwritten holding period (5 years), one of our co-investors in the property asked if we would entertain a property sale. Knightvest ordered a broker opinion of value (BOV) from Newmark which showed a “market price” of $193,677 per unit and a “strike price” of $203,852 per unit, a valuation range we felt was compelling in the current market environment.

Execution and Sale

In June 2025, Greystar purchased the property at a 5.15% cap rate. While returns fell below original proforma, we were pleased to deliver an 8.00% average annual return to Panther LP’s or a 1.38x Multiple on Invested Capital (MOIC) over the 4.8 year holding period. The distribution multiple to investors at the sale of the property was 1.03x (excluding a 0.014x holdback for reps and warranties will likely be distributed 6 months after closing), with investors previously having received distributions of 0.363x, bringing the total MOIC to 1.40x.