Final answer:
The underlined prepositional phrase in the sentence is adjectival, as it modifies the noun 'space' by specifying which space it refers to.
Step-by-step explanation:
The underlined prepositional phrase in the sentence is between our houses. It functions as an adjectival phrase because it modifies the noun 'space' by telling us which space it is specifically referring to. Adjectival phrases often answer the questions 'which one?' or 'what kind?'
Learn more about identifying adjectival and adverbial phrases