ATCAP Rittiman Industrial Park Industrial Portfolio :

Total square feet: 1,517,835 SF

2700, 2738, Greens Road
15800, 15925, 15911, 15900 Morales Road, Houston, Texas 77032

PROPERTY DESCRIPTION

ACQUISITION PROCESS

Panther and ATCAP closed the acquisition of the underlying properties in ATCAP Fund II in March (Rittiman) and August (Greens Road) of 2019, respectively. The portfolio is a collection of 27 industrial warehouse buildings totaling 1,517,835 SF located in San Antonio (Rittiman – 1,176,583 SF) and Houston, TX (Greens Road – 341,252 SF). We acquired the portfolio for $94,773,617, or $62.44 PSF, and the original operating plan called for a 5 to 7 – year hold with a projecte d sale at $116,062,000 or $76.47 PSF, applying a 6.70% cap rate. Projected returns to Panther Limited Partners at the time of acquisition were 12% average annual return and a 1.59x multiple on invested capital (MOIC)

PROPERTY HISTORY

ATCAP Fund II was a strong performer, averaging 92% occupancy over the 5.3 – year holding period with consistent increases in rental rates that have exceeded pro forma. Net operating income (NOI) from the combined portfolio increased from $6.1 million to $8.0 million (+31%) and the property paid distributions averaging 7% per year over the 5.3 – year holding period with only interruptions coming from Covid and the more recent cash sweep as we conduct the sales process. More recently, ATCAP renewed the two largest tenants in San Antonio (HEB and Sygma), essentially completing the business plan for the portfolio. With the business plan complete and the two loans on the portfolio both set to mature in mid – 2024, it was an ideal time to market the properties for sale, capital markets not with standing.

EXECUTION AND SALE

The majority of the portfolio was sold in August 2024 with a 50K SF building remaining in the Houston portion of the portfolio. This last building was ultimately sold in April 2025 and concluded the sale of all ATCAP Fund II assets. Panther investors achieved an average annual return of 15.2% and a multiple on invested capital (MOIC) of 1.93x over the 6.1 – year holding period. These returns compare to our original underwriting of 12% average annual return over a 5 – year holding period.