As we close the chapter on 2024, we want to reflect on a year marked by strategic growth, innovation, and resilience. From high-impact portfolio acquisitions and cutting-edge investment initiatives to advancements in our technology infrastructure and independent recognition of the quality of our employees, this year has exemplified our unwavering dedication to delivering quality investments and service to our partners and investors. Every milestone achieved underscores our commitment to excellence and innovation as we strive to create lasting value for those who trust us with their financial futures. Here is an in-depth look at the milestones that defined our year.
Non-Performing Loan Acquisitions
Our primary asset class of non-performing loans stayed tried and true throughout the year with over $267M purchased in total, comprised of 1,085 assets across 48 states. The top 5 states this past year included Michigan, Florida, New York, Georgia and Texas. We also resolved 1,069 assets by year end.
This strategy differed from the previous two years, where we utilized a more defensive approach to NPL. What we noticed was at the end of 2023 the market started to adjust to the higher interest rate environment, and we leaned into acquiring more NPL starting in Q4 of 2023 and were able to keep the acquisition momentum going throughout 2024. This nearly outpaced our previous highest annual total of $282,000,000 in 2021. And with an imminent close in early January, we’ve all but surpassed our record of NPL buying and look forward to a healthy year of major acquisitions ahead.
Strategic Acquisitions: Expanding Our Real Estate Portfolio
This year, PPR expanded its multifamily holdings with two acquisitions in Tennessee and Ohio, underscoring our ability to identify and secure high-value opportunities in promising markets.
In Cleveland, OH, we added a 252-unit multifamily complex to our portfolio, valued at $37.55M. Nestled in the Eastern Cleveland submarket, the property boasts a high occupancy rate and a tightly-knit community atmosphere. This acquisition highlights our focus on value-add investments, with plans to renovate units and introduce modern amenities that will support portfolio management return standards. The on-site management team, with an average tenure of 16 years, ensures continuity and operational excellence as we execute our four-year business plan.
In May we added another 205 units with a Nashville area property, which was selected due to the favorable loan terms from a loan assumption process that includes four years of interest only debt at a considerably under market interest rate. Additionally, the high entry cap rate aligns with our portfolio management focus. The business plan includes renovating all units and introducing modern amenities, deploying significant capital for capital improvements across the property.
These acquisitions reflect PPR’s commitment to investing in properties with both short-term profitability and long-term growth potential, further diversifying our portfolio in key markets.
Pioneering Portfolio Innovations
2024 also marked the launch of our Opportunity Fund I: Clean Cars Equity, an innovative investment vehicle focused on the rapidly growing car wash industry. In partnership with Olympus Pines, we are leveraging our expertise in real estate-backed investments to develop and operate Tommy’s Express Car Washes in strategic, high-growth markets.
The car wash industry, with over $10 billion in annual revenue, presents a unique opportunity for disruption. Tommy’s Express, the largest car wash franchise in the U.S., sets itself apart with cutting-edge technology, sustainable practices, and a customer-centric approach. This year, we celebrated the grand openings of our first two locations in San Antonio, TX, and North Charleston, SC, marking the beginning of an ambitious expansion plan.
These investments not only offer significant upside potential but also align with PPR’s strategy to provide differentiated opportunities typically reserved for institutional investors. With Tommy’s innovative features, such as 80% recycled water usage and advanced license plate recognition technology, we are excited to bring high-quality service and strong returns to our investors.
Awards and Recognition: Celebrating Excellence
This year, PPR continued to receive industry accolades that reflect the hard work and dedication of our team. For the second consecutive year, The Financial Times recognized us as one of the Americas’ Fastest Growing Companies, a testament to our sustained revenue growth and strategic vision during a challenging economic climate.
We were also proud to be named a finalist in the Philadelphia Business Journal’s Best Places to Work survey. This recognition speaks to the strength of our culture and the shared commitment to our mission of building wealth and prosperity for investors.
Additionally, our Director of Business Development, Amy Stavin, was honored as one of GlobeSt.’s Women of Influence for 2024. Amy’s achievements in real estate investment underscore her leadership and vision, and her recognition inspires others in our industry to strive for innovation and inclusivity.
Advancing Technology and a New Headquarters
In 2024, PPR made significant strides in improving both our technology infrastructure and workplace environment. The launch of our new Investor Portal represents a major milestone in enhancing the investor experience. This platform allows seamless self-investment, real-time portfolio tracking, and streamlined communication, ensuring that our investors have timely access to the tools they need to make informed decisions.
Our move to a state-of-the-art headquarters in Wayne, PA, is another highlight of the year. With over 12,800 square feet of space, the new office includes advanced amenities such as AI-enabled conference rooms, a podcast studio, and collaborative workspaces. This relocation not only supports our growing team but also enables us to host investor events and foster greater connectivity and collaboration across departments.
Industry Leadership Through Conferences
At PPR Capital Management, staying informed and connected within the real estate investment and lending sectors is integral to our success. Throughout 2024, our team attended several high-profile conferences, gaining insights, fostering relationships, and sharing our expertise with industry peers. Here’s an overview of the key events we participated in and the valuable lessons we brought back.
Earlier this year, we joined real estate investors from all over the world at BPCON 2024, BiggerPockets’ annual conference held in Cancun, Mexico. Our team participated in workshops covering topics including underwriting multifamily deals, finding the right business partners, and exploring tax strategies for investment portfolios. A notable highlight was the emphasis on self-directed IRAs as a tool for diversifying retirement investments. Additionally, we showcased our newly launched Opportunity Fund, emphasizing the benefits of accelerated depreciation and our commitment to partnering with trusted operators.
At the Limitless Expo, the conversation revolved around strategies for navigating market uncertainty and identifying non-traditional investment opportunities. Despite the challenges facing the commercial multifamily sector, industry experts encouraged attendees to embrace market disruptions as opportunities. Key strategies discussed included leveraging loan assumptions, investing in affordable housing, and partnering with experienced teams to navigate turbulent markets.
The National Private Lenders Association (NPLA) Conference in Miami provided a deep dive into trends shaping the private lending space. Highlights included groundbreaking moves such as Toorak Capital Partners completing the first-ever rated securitization in the bridge loan industry and discussions on the evolving lending models with lower loan-to-value ratios. The educational content provided at this event not only enriched our understanding of emerging lending trends but also reinforced our strategic focus on flexibility and innovation in private lending.
Held in Newport Beach, CA, the Geraci Innovate Conference brought together over 250 leaders in private lending. Sessions highlighted the increasing pressure on borrowers due to higher interest rates and the growing importance of rated securitizations in the lending market. This conference emphasized the critical role of adaptability and foresight in navigating the shifting lending landscape, reinforcing our efforts to align with market trends and deliver value to our investors.
Through these conferences, PPR strengthened its position as an industry leader, deepening our expertise and building relationships that will drive future success. We look forward to continuing to engage with these dynamic communities and leveraging the insights gained to deliver innovative solutions for our investors.
Looking Ahead to 2025
As we move into 2025, PPR Capital Management remains focused on delivering innovative investment opportunities and exceptional value to our valued investor base. Our achievements in 2024 set a strong foundation for continued success, and we are grateful for the trust and collaboration of our investors, partners, and team of committed employees.
Interested in learning more? Contact our Investor Relations team or visit our website to explore our latest opportunities. Together, let’s build a prosperous future.
