FW INVESTMENTS

What We Do

EXECUTIVE
SUMMARY

Panther FW Investments provides equity for investments in commercial real estate with a focus on multifamily, industrial, office and retail asset classes. As the equity provider in an investment, Panther partners with Sponsors which identify properties, source debt, acquire, manage and ultimately sell the properties. Panther currently partners with 10 Sponsors across these four asset classes and has completed 36 full cycle investments with an average annual return to investors (net of fees) of 19.1% (1.63x MOIC) over an average hold period of 50.3 months. Today Panther has over 450 active, accredited investors, in 30 individual partnerships with an average investment of $100,000 per investor, per transaction, and a median investment of $50,000.

Investment Philosophy

Panther invests in stabilized, cash generating, commercial real estate assets in need of value add, in fast growing, business friendly geographies, with proven sponsor partners. It is Panther’s belief that the Sponsor is the single largest factor determining the success of an investment and accordingly, we spend significant time vetting these partners. Our sponsors tend to focus on a single asset class and strategy and are experts in their fields. We believe the combination of a strong sponsor and real estate with secular tailwinds creates an optimized environment for attractive, risk adjusted returns.

Investment Goals

Panther’s goal is to invest in properties which generate meaningful cash – on – cash distributions throughout the hold period culminating with an attractive overall investment multiple including return of capital at disposition. We generally target investments with high – single digit or better annualized cash – on – cash distributions and average annualized returns of mid – teens or better, net all fees.

ASSET CLASSES

Panther invests in 4 commercial real estate asset classes:

Multifamily

1980’s & 1990’s Class B garden - style (2 or 3 story) properties in fast growing, business friendly regions. Panther acquires properties with significant rent gaps between Class B and new construction and makes substantial interior and exterior upgrades which drive strong rent and net operating income (NOI) growth. Once renovated, our product is best - in - class while still maintaining a generous discount relative to Class A rents.

Medical Office verbiage

Medical Office Building (MOB) is a specialized property designed exclusively for healthcare use. These are typically patient-facing facilities leased to healthcare providers for outpatient services, diagnostics, and specialty clinics. They are highly distinct from traditional office buildings due to their clinical infrastructure and compliance requirements.

Current
Investments

Light Industrial

1960’s - 1980’s Class B infill locations in large, growing cities. These properties sit in irreplaceable locations “inside the loops” of city centers where last mile delivery capability is critical for e -commerce and other local services. Zoning for new construction is difficult to obtain and is extremely expensive in these locations.

Retail

Panther specifically targets dominant shopping centers in primary or secondary markets with existing tenant profiles that either benefit from, or are defensive against, e-commerce trends. These retail centers are supported by strong local demographics.

PANTHER DUE DILIGENCE PROCESS

Vetting of Sponsors. Panther meets with several new sponsors each year in an effort to determine compatibility with Panther’s investment philosophy and goals. Our vetting process includes reviewing historical track records, examples of prior investment opportunities and their associated legal documents, reference checks with investors and partners (bankers, attorneys, mortgage brokers, etc), and background checks on Principals. Panther is typically shown multiple opportunities before we partner with a sponsor for the first time.
Investment Level Due Diligence. Panther reviews and stress tests the proposed financial model, debt structure and capital budgets supplied by the Sponsor to ensure it meets Panther’s conservative underwriting standards. Panther also negotiates profit sharing splits and advises on capital structure along with the capital budget.
Property Level Due Diligence. Panther runs its property level due diligence program independently from its Sponsor partners. Panther tours each property and also walks all of the individual units/suites/offices to better understand the physical condition of the property and capital expenditure requirements. Additionally, Panther reviews all 3rd Party property condition reports, survey and title reports, environmental reports and market analysis.
Investing Process. If initial due diligence is positive, Panther distributes an initial “Investment Flyer” to investors which contains a detailed review of the property, the market, the capital expenditure plan and the acquisition terms among other important information. Investors are asked at this time to make a soft (nonbinding) commitment which they are later asked to confirm when Panther concludes its due diligence and distributes its Property and Financial Information Report (usually 2-3 weeks later). Investors will also receive Private Offering Memorandum (POM) and Subscription Documents. Each investment requires a separate Limited Partnership in which investors own a percentage of a Class A interest.
Reporting. Panther is in regular communication with its sponsor partners. We report to investors on a monthly or quarterly basis (depending on the sponsor) and make distributions on the same cadence. Panther also prepares semi-annual portfolio reviews for each investment. Each of our investors has access to Panther’s online investment portal which includes updates of all investments, distribution history, status of capital account balance, etc.