Metro Fort Lauderdale Community Adds 360 Homes to Firm’s Florida Portfolio

COCONUT CREEK, Fla., Dec. 8, 2023 /PRNewswire/ — Ashcroft Capital, a fully integrated multifamily investment firm, today announced the acquisition of Elliot Cocoplum, a garden-style community located midway between Boca Raton and Fort Lauderdale. Birchstone Residential, Ashcroft Capital’s in-house property management company and construction affiliate, has assumed management of the community and will oversee its upcoming improvements. The acquisition marks Ashcroft’s entry into the South Florida market.

Elliot Cocoplum (formerly Advenir at Cocoplum), which features 360 apartment homes and townhomes, marks Ashcroft’s 10th apartment community within Florida. The community was acquired with equity from Ashcroft and affiliates in a partnership with Peaceable Street Capital.

“The Fort Lauderdale metro is one of the most popular destinations for relocation in the nation, as residents continue to migrate from several pockets of the U.S.,” said Frank Roessler, founder and CEO of Ashcroft. “The metro has experienced a population growth of 13% since 2010, which bodes well for the long-term health of the regional apartment market. While new construction in the area has focused on high-density product, we believe that considerable demand still exists for low-density, garden-style products such as Elliot Cocoplum. We’re confident the quiet, suburban environment—along with our upgrades and our commitment to improving the quality of our residents’ lives—will make the community a top-of-market option.”

Originally built in 1986 and situated at 4142 Cocoplum Circle, Elliot Cocoplum offers one-, two- and three-bedroom homes ranging as large as 1,495 square feet, with townhomes accounting for nearly 50% of the units. Existing amenities include two swimming pools, a resident clubhouse and business center, fitness center, outdoor kitchen and a dog park.

Ashcroft’s renovation efforts will include a comprehensive update and modernization of the amenity spaces, improved curb appeal, updated landscaping and signage, and the implementation of electric vehicle charging stations. In-home improvements will include the additions of stainless-steel appliances, tile backsplashes, vinyl-plank flooring, upgraded lighting and plumbing fixtures, a smart home technology package, matte black hardware and private yards for select ground-floor units. Additionally, hard-surface countertops will be implemented in select homes.

“Because of its strong history of institutional ownership, the property has received regular capital improvements since its inception and was delivered in superb condition,” said David Deitz, president of Birchstone Residential. “That said, we believe we can further modernize the community and deliver outstanding customer service to provide an even more attractive option to discerning renters. We look forward to joining the submarket and offering a best-in-class experience.”

In addition to Florida, Ashcroft owns communities throughout Texas, Georgia and North Carolina. The company is actively pursuing additional markets in the Sun Belt.

About Ashcroft Capital

Founded in 2015, Ashcroft Capital is a vertically integrated multifamily investment firm that currently owns and manages 14,000 units – totaling $2.6 billion in value – throughout several high-growth metros of the Sun Belt. The firm focuses on capital preservation while striving to return strong, risk-adjusted cash-on-cash to investors. Ashcroft is capitalized with high net worth, family office and institutional capital. Ashcroft specializes in value-add multifamily real estate and exhibits an expertise in extracting maximum value from every asset it acquires. Rather than attempting to play cycle timing, the firm strives to acquire excellent apartment communities within well-located submarkets of large and growing U.S. metros. Ashcroft is driven by a focused mission to improve the quality of life of the residents at each community in its portfolio.

About Birchstone Residential

Birchstone Residential is the in-house property management company of Ashcroft Capital. It has a comprehensive property management platform that provides all essential services, including leasing, maintenance, and construction management. Birchstone was purpose-built to execute the value-add business plan for each Ashcroft property, optimize financial returns and deliver high resident satisfaction. Committed to a people-centric culture and employee development through job training, job enrichment and accelerated development, Birchstone seeks to provide best-in-class service that attracts new residents and enriches the lifestyles of current residents.

If you are interested in reviewing our current offering, please visit https://info.ashcroftcapital.com/fund, or schedule a call with our Investor Relations Team at investorrelations@ashcroftcapital.com. We look forward to the opportunity to work with you and align our investment interests.   

Ashcroft Capital has expanded its multifamily presence in Florida with its debut acquisition in the Sarasota area. The firm and joint venture partner Iviron Capital have acquired Halston Lakeside in Sarasota, Fla. The identity of the seller could not immediately be disclosed.

Read Jackson Chen’s full article on Multi-Housing News.

Multifamily investment firm Ashcroft Capital continues to expand its Florida footprint. The firm has acquired the 358-unit Halston Lakeside in Sarasota, marking its first property in this fast-growing Gulf Coast region as well as its ninth in the state.

Read Christine Serlin’s full article on Multifamily Executive.

Ashcroft Capital CEO Frank Roessler recently sat down with MFE Magazine to discuss the current pace of investment sales. In the interview, Frank talks about when sales might pick back up, details why multifamily offers long-term appeal to investors, and shares Ashcroft’s current acquisition strategy.

Read the full article at MFE Magazine.

Article Excerpt:

MFE: Do you see any reason to believe that there will be a long-term dip in investor interest in multifamily properties?

Roessler: I think multifamily is poised to attract strong investor interest over the long term. Whether we’re going through a rent-growth plateau or even a slight decline, the fundamentals still remain very strong compared with other asset classes.

In addition, the current cost of buying a home in a time of higher interest rates will support apartment demand, and the impact of a recession on renter demand could be relatively minimal. Generally speaking, companies have strong balance sheets, which should minimize layoffs during a downturn.

MFE: What is Ashcroft’s current acquisition strategy?

Roessler: We’re focused on good product. We haven’t acquired a community this year, but that doesn’t mean we aren’t looking for the right fit. The current climate can create opportunities for disciplined buyers with the ability to scour the markets and wait for the right property to come along. We don’t attempt to play real estate cycles. However, we do believe the next 12 to 18 months could present interesting opportunities in our target markets throughout the Sun Belt.

MFE Staff. “Q&A With Frank Roessler of Ashcroft Capital” MFE Magazine, 1 June, 2023, https://www.multifamilyexecutive.com/business-finance/business-trends/q-a-with-frank-roessler-of-ashcroft-capital_o.

The National Apartment Association, recently sat down with Ashcroft’s Chief Investment Officer Scott Lebenhart to discuss a number of topics, including investment philosophy, growth in the metro Atlanta market, expansion into North Carolina, and their plans for 2023.

Read the full article at National Apartment Association.

Article Excerpt:

What are your investment and growth plans for 2023?

Lebenhart: 2023 will be a very interesting year for all of us in the multifamily space. In a general sense, we plan to continue to pursue high-quality properties in strong Sun Belt locations. More specifically, we will focus our acquisition efforts on unique properties that feature mostly two- and three-bedroom units and offer residents home-like features such as direct/indirect access garages, large floor plans and
townhome-style units.

At the end of 2022, we entered the North Carolina market with our purchase of Midtown 501 in Chapel Hill, and we intend to build a sizable presence over time in the Raleigh-Durham-Chapel Hill area that will afford us economies of scale.

Over the course of 2023, we will look to continue to acquire properties in our existing Sun Belt markets (Dallas-Fort Worth, Atlanta, Orlando, Tampa, Jacksonville and Raleigh-Durham) while also pursuing opportunities in South Florida, Austin, San Antonio, Charlotte, Nashville and Phoenix. The current volatility in the capital markets can make acquisitions a challenge, but we remain committed to taking advantage of the right opportunities when they present themselves.

Broadly speaking, how do you see the apartment market performing in the year ahead, and what will the investment sales landscape look like?

Lebenhart: Given the rise in interest rates and the resulting spike in the cost of homeownership, we believe demand will continue to remain strong for rental housing. In our own portfolio, we are still seeing rental growth and strong occupancy rates. We continue to see strong demand for the units that we renovate.

As for investment sales, word of some deals here and there is beginning to trickle out, which is helping to create those data points and benchmarks that everyone is looking for. It’s clear there is still significant capital pursuing multifamily properties. However, the debt market remains volatile, but lenders are working to get creative in order to give borrowers options on both acquisitions and refinances. Until there is some more clarity on interest rates and the price of debt, sales will continue to be slow, but I expect some clarity midway through the year, and transaction volume should pick up at that point. As more deals begin to happen, I believe that will help to restore some investor confidence. And while some distressed sales definitely will occur throughout the year, I don’t expect the flood of these properties later this year that some others are expecting.

“Investing in the Future” National Apartment Association, 18 May, 2023, https://www.naahq.org/investing-future.

Ashcroft Capital’s Chief Investment Office, Scott Lebenhart, wrote an article for Multifamily Insiders, shared on April 24, 2023, “Apartment Investment Sales Will Rebound in Time”

Read the full article at Multifamily Insiders.

Article Excerpt:

Looking ahead, it appears the slow pace of multifamily property sales will continue for a while. But at some point – and perhaps sooner rather than later – multifamily properties will once again become a favorite destination for investor dollars.

The Current Landscape
It’s no mystery why the pace of property sales is so slow. Rising interest rates and volatility in the debt markets – including the recent failures of several regional banks – have made transactions difficult. Slowing rent growth, the impact of a potential recession on renter demand and soaring property insurance costs are giving buyers pause, too. As a result, while there appears to be plenty of capital looking to invest in multifamily, a large gap generally still remains between sellers’ asking prices and what buyers are willing to pay.

In addition, not many distressed properties are available for acquisition right now as those owners still have term on their loans, which gives them the ability to wait a bit longer in hopes that the capital markets will improve and allow them to refinance their current loans with more favorable options than are available today. Investors are waiting for these properties to become truly distressed, and there is widespread belief that more will be on the market later in the year.

It’s quite possible that investment sales won’t pick up real momentum until next year. The Federal Reserve raised interest rates again in March, and according to the Associated Press, there is support among Fed officials for at least one more rate hike this year.

But as we gain more clarity about the interest rate outlook, which could happen later this year, sales activity will begin to rise, and you don’t have to squint hard to see the multifamily sector once again becoming a favored asset among investors.

Lebenhart, Scott. “Apartment Investment Sales Will Rebound in Time” Multifamily Insiders, 24 April 2023, https://www.multifamilyinsiders.com/multifamily-blogs/apartment-investment-sales-will-rebound-in-time

Ashcroft Capital’s Chief Investment Office, Scott Lebenhart, was recently quoted in a Multifamily Executive article shared on November 13, 2022, “Thriving Market: Is Charlotte the New Gem of Multifamily?”

Read the full article by Paul Willis at Multifamily Executive.

Article Excerpt:

Ashcroft Capital has not yet joined the Charlotte market. But the fully integrated multifamily investment firm, based in New York, certainly has its eyes on the city.

“We hope to plant the Ashcroft flag in Charlotte sooner than later as we have been exploring opportunities in the market for several years now,” says Scott Lebenhart, chief investment officer of Ashcroft Capital. “Charlotte’s population growth and relative affordability continually draw interest from investors. The attractive business climate, established infrastructure, and excellent quality of life has created the type of strong growth that we target in our investments.”

Lebenhart says it’s possible that when Ashcroft expands to the market, it could be more than just a small splash. The company spends a considerable amount of time studying the intricacies of a potential new market and creates economies of scale and efficiencies within the market. He points to the company’s presence in Atlanta, where Ashcroft purchased more than 3,400 units in the last year and a half.

Lebenhart says the presence of major companies within the Charlotte MSA has helped strengthen its fundamentals, specifically naming Bank of America, Wells Fargo, Microsoft, Nuveen, Honeywell, Truist and Coca-Cola as businesses that provide stability to the economy here. Employment, population, and income growth make Charlotte an extremely attractive market to invest in, he adds.

“As with most larger Sun Belt markets, Charlotte has seen a tremendous amount of investment activity,” Lebenhart says. “In the last 12 months, we have continued to see large institutions target investments in the Charlotte area. There have been $7.5 billion of apartment transactions over the past 12 months. Although we are seeing investment activity slow down—along with activity throughout the rest of the country—we are still seeing a lot of investor demand for product in the Charlotte MSA.”

Lebenhart says Ashcroft will be diligent to invest in areas of Charlotte where demand will be the strongest moving forward, aiming to avoid any submarkets where absorption rates are affected by the influx of incoming supply.

Willis, Paul. “Thriving Market: Is Charlotte the New Gem of Multifamily?” Multifamily Executive, 13 November 2022, https://www.multifamilyexecutive.com/business-finance/business-trends/thriving-market-is-charlotte-the-new-gem-of-multifamily_o

 

Industry experts are optimistic about the long-term strength of the Dallas-Fort Worth multifamily market, citing strong migration and economic trends.

In the first half of 2022, the metro added just under 150,000 jobs, the largest gain in the nation, according to Marcus & Millichap’s recent market report for the third quarter. Dallas-Fort Worth also ranked at the top for overall population growth in a metro area with the Census Bureau reporting 97,290 people added between July 2020 and July 2021.

That’s welcomed news for multifamily developers and owners in the market, with population growth outpacing inventory growth.

Read the full article by Christine Serlin at Multifamily Executive

The Atlanta rental market is expected to remain strong due to a healthy economy, a lower cost of living, good demographic trends, and positive rent growth, according to a midyear multifamily report for the metro from Berkadia.

Multifamily starts have increased since the beginning of the pandemic due to recent strong demand. More than 26,000 units have been added since the beginning of 2020, with delivery of 4,500 units in the first half of this year. In all, 11,752 units are expected to be delivered in 2022, with another 20,385 deliveries projected for 2023. According to Berkadia, leasing activity hasn’t kept pace with the deliveries in the first half of the year, with the market seeing a drop in occupancy. However, the current occupancy rate of 95.7% is higher than the pre-pandemic average of 94.5% in 2019’s fourth quarter.

Read the full article by Christine Serlin at Multifamily Executive.

Ashcroft Capital Founder and CEO Frank Roessler was a guest on The Multifamily Review podcast. Over the course of the more than 20 minute interview, Frank discusses his career in real estate and the launch of Ashcroft.

To listen to the full episode, you can access it on Stitcher and Google Podcasts.

A Multi-Housing News article examining today’s in-demand apartment amenities features comments and perspective from Ashcroft Capital CEO Frank Roessler.

“It really comes down to convenience and flexibility,” Roessler told the magazine. “Home isn’t just a place to lay your head down at night anymore. Residents are even more focused on comfort, space and amenity packages.”

He added that residents are placing a higher priority on playgrounds and green spaces in the work-from-home era.

“These spaces offer an additional place for kids to expend energy while their parents work remotely,” he said.

Visit Multi-Housing News to read the entire article.