NEW YORK – Ashcroft Capital (“Ashcroft”), a vertically integrated multifamily investment firm, today announced the closing of a strategic partnership (the “Partnership”) with institutional investors including investment funds advised by Goldman Sachs Asset Management and Blackstone Strategic Partners. The Partnership will provide liquidity to existing investors across the Ashcroft portfolio in addition to funding future acquisitions. The Partnership expects to invest in value-add multifamily properties throughout the Sun Belt markets, and Ashcroft currently anticipates that the Partnership will acquire real estate assets with an aggregate cost of $800 million.
Ashcroft currently owns communities throughout Texas, Georgia and Florida, and is seeking to expand into the Carolinas, Arizona, Colorado, Tennessee and Nevada. Birchstone Residential, Ashcroft’s in-house property management affiliate, will manage all properties acquired by the Partnership.
“We’re excited to partner with such highly respected and experienced institutional groups,” said Frank Roessler, founder and CEO of Ashcroft. “We are grateful for their support and confidence in us, as we continue to execute our value-add strategy, focusing on diligent underwriting, business plan execution and seeking to drive a best-in-class resident experience. This partnership will enable us to continue to expand at a rapid-yet-measured pace, as we’ll carefully select assets that fit within our investment parameters and possess a tremendous potential upside in our key markets.”
Since its inception in 2015, Ashcroft has acquired more than 14,600 apartment homes spanning nearly 50 communities. In an active 2021, Ashcroft acquired 11 properties totaling more than 3,500 units across three states. Ashcroft, with over $1.9 billion in assets under management as of December 31, 2021, is targeting approximately 15 to 20 acquisitions in 2022. In addition to portfolio expansion, Ashcroft and Birchstone each possess growing teams to support and expedite the continued acquisition efforts.
“We are delighted to welcome these new blue-chip limited partners, and we look forward to the continued expansion of our institutional platform,” said Bill Kay, managing director of capital markets for Ashcroft. “As we continue to grow, it is invaluable to be backed by such esteemed institutional players and we remain eager to acquire well-vetted assets in our target markets and further expand the portfolio.”
Ashcroft’s value-add strategy generally includes an update and modernization of the amenity spaces, improved curb appeal and upgrades to landscaping and community signage. Ashcroft also modernizes apartment interiors with features such as stainless steel appliances, hard-surface countertops, upgraded lighting and plumbing fixtures, tile backsplashes, and vinyl-plank flooring to create a better living experience and make assets more appealing in their respective markets.
Through a competitive lender selection process managed by Eastdil Secured, PGIM Real Estate, the $209.3 billion real estate business of PGIM, the $1.5 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU), has committed core-plus financing in support of certain acquisitions executed by the Partnership in connection with its closing, as well as in support of funding for property renovations.
“We are pleased to further expand our lending relationship with Ashcroft Capital,” said Trevor Arnholt, Vice President, PGIM Real Estate who led the deal on the firm’s behalf. “This transaction represents a continuation of our commitment to and positive outlook for the multifamily sector, particularly in the growing hubs in the Sun Belt region.”
Latham & Watkins LLP served as counsel to the general partner in connection with the offering of interests in the Partnership.
Devon Park Advisors provided strategic capital raising services to Ashcroft Capital.
View the full press release here.
The testimonials, statements, and opinions presented herein (collectively referred to as “Testimonials”) do not necessarily reflect the opinions of Ashcroft Capital LLC and/or its affiliates. Any ideas and strategies construed from Testimonials should never be relied on and/or used without first assessing your own personal and financial situation, or without consulting a financial professional.
Testimonials are applicable to the individual(s) depicted. Results will vary and may not be representative of the experience of others. Unique experiences and past performance do not guarantee future results. All Testimonials are voluntarily provided. No person or entity was paid for his/her/its/their Testimonials. No free products, services, or any benefits were provided in exchange for said Testimonials.
Ashcroft Capital LLC and/or its affiliates makes no representations as to the accuracy, completeness, suitability, or validity, of any information in the Testimonials. Ashcroft is not liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use of Testimonials.
Past performance is no guarantee of future results and should not be relied upon as an indicator of the Partnership’s future performance or success. An investment in the Partnership is highly speculative and entails a high degree of risk, including the risk of loss of a Limited Partner’s entire investment. There can be no assurance that the Partnership will achieve its investment objectives or that the Limited Partners will receive a return of their capital.