Real Estate

Delivering real results

Real estate is our foundation, and we evolve it like no one else. From our team to our technology, we apply real-time insights and lessons learned to invest across asset classes and the capital stack. Predictive analytics and broad perspective allow us to pivot business plans, optimize upside, and reduce risk. 

interior photo of a Pennybacker real estate project
real estate icon
interior photo of a Pennybacker real estate project
interior photo of a Pennybacker real estate project

Discover our Relative Value solution

Our flagship Relative Value Real Estate Fund Series is where we got our start. Since 2006, we’ve grown our reputation for repeatable success with a data-driven strategy focused on improving underperforming properties and neighborhoods in key growth markets.

6
closed-end series funds
$
3B
+
equity raised to date
102
/153
investments realized to made
20+
years of investment experience
As of December 31, 2023
BEFORE
AFTER
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Showing our work

Proto Park

where
3200 Irving Blvd
Dallas, TX
property
251k sq. ft.
9 acres
acquired
September 2020

We redeveloped an infill industrial asset into a modernized, premium product that appeals to the next generation of tenants.

Why
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Proto Park created opportunity to deliver returns and significantly improve the built environment of a neighborhood:

  1. Undermanaged: We acquired this neglected industrial property from an absentee owner.
  2. Ideal location: Situated near a dense consumer base, redeveloping Proto Park could offer modern space with nearby access to significant purchasing power and strong regional connectivity.
  3. Best-in-class operator: We partnered with a a dynamic, local operator to deliver building design creativity, modern functionality, and unique digital marketing.

How
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Penybacker took timely action based on our insights, networks, and real estate product development expertise to:

  1. Renovate: Cured deferred maintenance and quickly upgraded all spaces with completed unit renovations by Q1 2022.
  2. Revitalize: Created a high-quality, urban industrial showroom to drive tenant demand.
  3. Rebrand: Launched a new property name, logo, marketing collateral, and virtual leasing experience to reintroduce the property to tenants.
Results
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  1. Leasing: The property was less than 50% leased at acquisition, with rental rates at $3.50 NNN. We leased up 136K SF of space prior to rehab completion at average rates of $8.50 NNN, reaching 80% leased by late 2021.
  2. Performance: We’ve outperformed expectations with a property that is 100% leased at 2.25X the in-place rents at acquisition. We’re outpacing average rental rates in the submarket, and most recently signed a 24K SF, 5-year lease at $11.55 NNN.

Explore our Evergreen Solution

At Pennybacker, we are constantly looking for ways to create value for our investors. That’s why in late 2021, we added an open-ended fund to serve investors seeking long-term, compounded growth. Evergreen uses differentiated strategies to target attractive, risk-adjusted entry points to deliver long-term outperformance.

1
open-ended fund
$
250M
+
equity raised to date
6
investments made since inception
2021
inception
As of December 31, 2023
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Showing our work

Vidorra

where
Dallas, TX
property
198 units
1.9 acres
acquired
June 2022
What

Newly built, Class A luxury multi-family asset located in a prime, walkable location with high barriers to entry.

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Showing our work

3200 Bush

where
Raleigh, NC
property
251k sq. ft.
19.8 acres
acquired
May 2022
What

Well located infill industrial asset with long-term market-to-market opportunity.