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How Ashcroft is Navigating Today's Market

An interview with Scott Lebenhart,
Chief Investment Officer

 

Ashcroft's Investor Relations Manager, Evan Polaski, and Chief Investment Officer, Scott Lebenhart, discuss the current state of the multifamily market. Watch this in-depth interview to learn how the Acquisitions Team is leveraging the current market conditions to strengthen our portfolio and offering.

Disclaimer: The content shared throughout this interview is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial objectives, needs and risk tolerance.

What is the AVAF2?

In an effort to continue our focus on capital preservation and further mitigate risk while still having upside potential, we are launching the Ashcroft Value-Add Fund II.

How do you get started? How does it operate? We have prepared the AVAF2 FAQ Guide to help address commonly asked questions.

DOWNLOAD THE AVAF2 FAQ GUIDE

 

6-10 Properties

DIVERSE REGIONAL MARKETS

5-7 Years

ANTICIPATED LIFE OF FUND

$25,000

MINIMUM INVESTMENT

Investment Criteria

thumbnail_image002 Communities located in the growth markets of the Sun Belt including Dallas-Fort Worth, Atlanta, Orlando, Tampa, Jacksonville, Raleigh/Durham, Charlotte, and Phoenix
thumbnail_image002 Class A/B properties with excellent opportunity for value creation through improvements

 

thumbnail_image002 Under performing or distressed multifamily properties
thumbnail_image002 200+ Unit assets in highly desirable submarkets
thumbnail_image002 $20 million to $150 million total capitalization per property

 

Targeted Fund Returns*

Cash-on-Cash Returns
(Avg including sale)

13% to 20%

Cash on Cash Returns
(Avg excluding sale)

6.8% to 8.5%

Levered IRR (Net)

13% to 18%

Equity Multiple (Net)

1.5x to 2.0x

Annual Cash-on-Cash Projections**

Year 1:

5.0%

Year 2:

7.0%

Year 3:

7.4%

Year 4:

8.0%

Year 5:

9.0%

 

*Based on 5 year hold for Class B Limited Partner Investment. Target returns represent ranges for base case, downside, and upside scenarios.

**Projected cash on cash returns are based on base case assumptions for the properties within the Fund

Note: Projected returns are based on LP levels of Fund

Return Structure

Investors have the opportunity to invest in Class A and/or Class B Limited Partnership Interests.

Limited Partner (A) - Class A

Class A Limited Partner’s earn a coupon of 9% per annum of such Limited Partner’s investment in Partnership (the “Class A Coupon”). Class A Limited Partners have limited distributions upon disposition of the Property. This tier offers stronger projected cash flow and reduced risk as compared to Class B Limited Partners.

Limited Partner (B) - Class B

Class B Limited Partners earn a coupon of 7% per annum of such Limited Partner’s investment in Partnership (the “Class B Coupon”). Upon the disposition of the Property, after payment of debt, return of Class A and Class B Limited Partner investments, payment of any unpaid Class A and Class B Coupon Amounts, and then, prorata, seventy percent (70%) to the Class B Limited Partners and thirty percent (30%) to the General Partner until such time as the Class B Limited Partners have received a cumulative amount equal to thirteen percent (13%) IRR. Then, Class B Limited Partners will receive 50% of the remaining proceeds from disposition. This tier has a lower coupon but provides greater participation upon disposition or capital event compared to Class A Limited Partners.

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Understanding the
Benefits of Investing in a Fund

  • Spreads out investor equity over multiple acquisitions
  • Greater exposure to investments in various markets and asset classes
  • Ability to invest in different individual property business plans and hold periods
  • Provides the opportunity to participate in upside on property price appreciation upon sale, refinances, and supplemental loans
  • Diversification offers the ability to reduce risks while offering the potential for higher returns
  • Potential tax benefits for investors such as pass-through depreciation opportunities and 1031 exchanges

 

Still have questions?

Schedule a 1-on-1 call with a member of our investor relations team to learn more.

 

 

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Disclaimer: Ashcroft is not an investment adviser or a broker-dealer and is not registered with the U.S. Securities and Exchange Commission. The information on this website should not be used as the sole basis of any investment decisions, nor is it intended to be used as advice with respect to the advisability of investing in, purchasing or selling securities, nor should it be construed as advice designed to meet the investment needs of any particular person or entity or any specific investment situation. None of the information contained herein constitutes legal, accounting or tax advice or individually tailored investment advice. The reader assumes responsibility for conducting his/her own due diligence and assumes full responsibility of any investment decisions.

About Ashcroft Capital

Ashcroft Capital focuses on capital preservation while striving to return strong, risk-adjusted cash on cash to investors. The firm specializes in value-add real estate and has an expertise in extracting maximum value from every asset it acquires.

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