Over the course of several months in 2013, Panther identified four exceptional investment opportunities. Three were ground-up development projects; one an existing Class "A" community. Two projects, Integra Village and Integra Cove, were in Florida. The others, Integra Hills and Integra Hills Preserve, were in Tennessee. These were aggregated into PPI Fund I, a transparently structured multi-project fund that would be financed with $34 Million in equity, Panther's largest raise to date.
PPI Fund I differed from the typical "fund" structure in several key respects. First, assets were pre-identified by Panther, which allowed investors to assess the merits of each property prior to investing. Second, reported results would include detailed operations of each property along with consolidated results. Lastly, the fund was structured to favor investor returns. Panther would not receive Sponsorship incentive fees until investors were current on their preferred rate of return and had 100% of capital returned for all four projects. This unusual feature preserved a key aspect of Panther's single-asset LLCs, where Sponsor incentive fees are behind the investor in the waterfall with respect to incentive fees.
PPI Fund I was Panther's first multi-project fund focused on ground-up developments. Pre-construction activities of site preparation and permitting were handled by Panther's local development partner. Construction and management systems implementation were completed in a timely and cost-effective manner, paving the way for a smooth transition to portfolio stabilization.
Meticulous planning led to construction being completed ahead of schedule and under-budget on all three development projects. Within two years from the time of the land acquisitions all three ground-up developments were approaching stabilization with approximately 75% occupancy. At that time, Panther also accepted an unsolicited bid for Integra Village. Investors realized a substantial return on the sold property.
Panther's strong ground management continued to add value to each property and in June 2016, Panther closed on the fund's second property, Integra Cove. Following this sale, investors in PPI Fund I had been returned nearly all of their original investments. The fund's two remaining properties in Chattanooga were valued well above their mortgage debt obligations, making PPI Fund I one of Panther's most successful and dynamic investments to date.