By: Travis Watts, Director of Investor Development

Braxton Waterleigh: Where Luxury Living Meets Opportunity 

Ashcroft Capital presents a unique investment opportunity that combines luxury living with strategic market positioning. Located in one of the top three fastest growing master-planned communities in the country, Braxton Waterleigh is a premier 354-unit luxury asset located in Winter Garden, Florida, a submarket of Orlando.

Built in 2021 by Fortune 500 homebuilder D.R. Horton, this property offers a unique blend of elegance, community appeal, and investment potential. Braxton Waterleigh stands as a prime example of a Class A property, featuring high-end amenities, open floor plans, and spacious 9ft ceilings.

The property’s vicinity boasts a 72% white-collar workforce, with average incomes around $90,000 within a one-mile radius, and $115,000 among property residents. This affluent demographic, along with access to A-rated schools and a rapidly expanding job sector, makes Braxton Waterleigh highly attractive to investors. 

 

Market Analysis: Orlando’s Diverse Economy Fuels Apartment Demand  

Orlando is known globally for its tourism industry. It is home to Walt Disney World and Universal Orlando, which support over 100,000 jobs and attract more than 75 million tourists every year. Beyond tourism, Orlando’s robust economy includes thriving sectors such as healthcare, aviation and defense, aerospace, financial services, and advanced manufacturing. These diverse industries drive strong job growth and high salaries, fueling apartment demand.  

 

Submarket Analysis:  Horizon West’s Master-Planned Oasis 

Braxton Waterleigh is nestled in Horizon West, a master-planned community that has seen population growth of 130% since 2010. Horizon West is not just another suburban development; it is a dynamic community spanning over 22,000 acres (about the area of Manhattan) designed for family, entertainment, luxury, employment, and convenience.  

The community is designed to support the growing population, as residents enjoy easy access to major roads, a variety of retail and entertainment options, and access to newly constructed A-rated schools located in the #2 ranked school district in Orange County. The area is also home to significant developments like the Hamlin Town Center and Flamingo Crossings Town Center, which enhance the community’s convenience and appeal.  

 

Mark-to-Market Opportunity 

Over the past few years, three new apartment communities have been delivered in the immediate area surrounding Braxton Waterleigh. During the lease-up phase of these communities, rents remained flat as concessions were offered to new residents in order to help stabilize the properties. These properties are now achieving high occupancy levels, and rents are beginning to increase in the market accordingly. 

Given the current owners’ need to sell due to their maturing debt, coupled with below-market rents, Ashcroft is acquiring Braxton Waterleigh at a nearly 23% discount. Furthermore, completions in Orlando are expected to fall by 57% in 2026 which is projected to increase the demand for Class-A apartments, including Braxton Waterleigh. 

 

Braxton Waterleigh Property Features and Amenities 

Braxton Waterleigh offers a variety of best-in-class amenities that boost its appeal to potential residents. These include a heated saltwater pool, first-class fitness center, car wash station, BBQ grilling areas, a dog park, parcel lockers, sand volleyball court, business center, premium lounge areas, and units that offer oversized floor plans. This combination of high-end amenities and well-designed living spaces positions Braxton Waterleigh as a premier residential option in the area. 

 

Strategic Acquisition and Market Positioning 

The acquisition of Braxton Waterleigh is strategically timed to take advantage of current market conditions. The property is being purchased at a ~10% discount to replacement cost and at a cap rate of 5.5%, which is more competitive compared to recent transactions and comps in the area. Current market dynamics and a pre-existing relationship with the seller have created an off-market opportunity for Ashcroft Capital to acquire this asset with favorable terms. 

 

The Business Plan at Braxton Waterleigh 

Though the property currently offers luxury finishes and a best-in-class amenity package, we will continue to further enhance the common areas and amenities to elevate the overall appeal of the property. Along with rebranding to Ashcroft Capital’s “Halston” brand, the business plan for Braxton Waterleigh includes several strategic initiatives to enhance the property: 

• Enhanced Unit Interiors: Implementing tech packages that provide smart locks, smart thermostats, smart lights, and leak detection systems, and replacing carpet in living areas on the 2nd and 3rd floors with upgraded faux wood flooring. 

• Exterior and Common Area Improvements: Elevating amenities and the common areas, addressing minor deferred maintenance, and improving curb appeal and signage. 

• Operational Improvements: Tightening operations and improving resident retention. Adjusting rents to market level and reducing concessions and bad debt on the property. 

These projects will be overseen by Birchstone Residential and Birchstone Construction, Ashcroft Capital’s in-house property management and construction team, to ensure a seamless and effective implementation. 

 

Financial Structuring for Investors 

To mitigate risk, Ashcroft Capital will secure a 5-year fixed-rate agency loan with an LTV of approximately 65-70%. This loan is anticipated to include 5 years of interest-only payments at an all-in interest rate of approximately 5.55%. This strategic debt structuring aligns with the property’s anticipated hold period and reduces the risk of interest rate fluctuations throughout the hold period. 

 

Looking Ahead: The Exit Strategy  

Ashcroft Capital plans to seek a disposition of Braxton Waterleigh in approximately five years.  The goal is to capitalize on the property’s enhanced value resulting from the successful implementation of the business plan, market appreciation, and stabilized rental income.  

 

Join the Journey: Braxton Waterleigh Offers Strategic Advantage  

As Orlando continues to grow and diversify, Braxton Waterleigh is poised to capitalize on current and upcoming trends, as a strategic acquisition by Ashcroft Capital. 

The property offers investors a strong resident appeal, mark-to-market upside potential, and strategic positioning within one of the nation’s fastest-growing communities in the United States. Investing in Braxton Waterleigh is not just about owning a piece of luxury real estate; it is about joining a dynamic community of investors alongside a best-in-class operator to enhance the lives of residents and support the ever-growing demand for rental housing in Central Florida.   

To learn more, please visit www.investbraxton.com or schedule a call with our Investor Relations Team today.   

 

travis@ashcroftcapital.com

The spotlight is currently on the transformations at the Ashcroft Value-Add Fund III’s (AVAF3) Florida properties, Halston Lakeside and Elliot Cocoplum. 

Halston Lakeside’s Journey from Acquisition to Stabilization 

Nestled in picturesque Sarasota, Halston Lakeside is a testament to dedication and growth. The occupancy of this property is at around 87%. The current goal is to reach 90% occupancy by the first week of February. This would reach the goal of stabilizing this asset by the end of February. It’s not uncommon to see higher than expected turnover on properties that we’ve just acquired due to new ownership and property management. Renovations are being completed on site and the rents are starting to rise. 

Revitalizing Community Living 

On the construction front, the exterior renovation scope is already about 90% completed. This includes things like the dog park, tennis courts, and pickleball courts. The entire property is also being repaved, with 60% of the project completed. The leasing office has gone through several rounds of design and is finally at the approval stage with renovations expected to begin in the coming weeks.  

Interior unit renovations are being well-received by prospective renters and new residents on the property. To date, 49 units have been renovated to a high-end scope as seen below, setting a new standard for comfort and style.  

Elliot Cocoplum’s Strategic Push 

Switching gears to Elliot Cocoplum, located in Coconut Creek, a submarket of Fort Lauderdale. The trending occupancy for this property is at 91%. Over the next two weeks, we anticipate moving closer to 94% occupied. Similar to Halston Lakeside, Ashcroft Capital and Birchstone Residential continue to work together through this periodic time of lower occupancy and delinquency management. The goal, as always, is to stabilize these properties as soon as possible. 

Navigating Renovation Hurdles 

Unfortunately, the city of Coconut Creek has requested that we use a different roofing material than the one that was originally selected and budgeted for. With the help of land use attorneys, different material types are being evaluated to determine the best path forward. To offset any potential renovation cost increases, other exterior renovation projects across the board are being reviewed to identify where we can reduce costs or reallocate funds. 

Until a new roofing material has been chosen and approved, other exterior projects such as the clubhouse will be put on hold. The design of the clubhouse has been finalized and received approval, ensuring its readiness for immediate launch once the projects resume. We anticipate getting started in the coming weeks, once a new budget for the roof material and costs has been finalized.  

Similar to Halston Lakeside, the interior unit renovations are being well received by the market. A total of 35 units have been renovated on this property within the proposed budget set in the renovation scope. 

Maximize Your Investment Potential in Florida’s Prime Leasing Season 

Good news for both properties, Florida is entering prime leasing season. Investors should keep this in mind when evaluating investment in the AVAF3. With funding nearing completion, it is anticipated that the AVAF3 will close soon. Guarantee your spot in a meticulously structured portfolio backed by a strong, proven track record before the opportunity closes. If you’re already invested in the fund, we’re grateful for your partnership and invite you to add to your investment before we close out this fund in its entirety. Please schedule a call with our Investor Relations Team if you have any questions or would like to learn more about our current offering.   

 

Midtown 501’s Story Unfolds in Chapel Hill

Midtown 501, the Ashcroft Value-Add Fund III’s inaugural property in Chapel Hill, North Carolina, has demonstrated significant progress since its acquisition in December 2022. Managed by our in-house teams at Birchstone Residential, the property has benefitted from our unique value-add plan.

Key updates at Midtown 501

• A healthy occupancy rate of 91.1%, with ongoing efforts to boost this figure before the holiday season
• Lease renewals have seen an encouraging increase of approximately 9.43% in Q3
• Major capital expenditure projects completed, enhancing the property’s appeal and functionality

For further details on the renovations, view the Midtown 501 update video above, highlighting the latest developments at Midtown 501 and its position in one of the top 20 US markets.

As we move forward, all three deals within AVAF3 are now closed and generating cash flow, with value-add plans actively being executed.

If you would like to learn more about investing in syndications, visit https://info.ashcroftcapital.com/fund, or schedule a call with our Investor Relations Team. 

Why should you care about AVAF3’s Elliot Cocoplum? 

We reviewed over 150 potential deals for the Ashcroft Value-Add Fund III (AVAF3) and chose Elliot Cocoplum as the final property for the fund. 

Elliot Cocoplum is a 360-unit property in Broward County, an infill market between Boca Raton and Fort Lauderdale, with many value-add opportunities to take advantage of.  

The property was built in 1986/87, making it an ideal location to modernize the amenities and renovate the units to a high-end scope. 

Concrete block construction provides several benefits that directly impact NOI:  

1. Noise reduction maintains strong occupancy rates.  
2. Maintenance costs are reduced.  
3. Insurance costs are lower due to the durability and strength of construction.  
4. Can withstand some of the harshest conditions Mother Nature has to offer.  

Reducing expenses like maintenance costs and insurance, while increasing occupancy rates, helps grow net operating income making a property more profitable. 

This multifamily community provides the unique opportunity to invest in an asset with both townhome units and traditional apartment style units.  

Did you say already renovated? 

When the property was acquired, the previous owner had already renovated 60% of the units to a higher end scope. This included the addition of new granite countertops, backsplashes, stainless steel appliances, cabinet fronts, light fixtures, and plumbing upgrades.  

These units are now achieving $200 in rent premium compared to the classic units.  

The acquisition of the property was finalized in September. Since then, our in-house property management company has proceeded with the Value-Add Business Plan for the property. 

The first thing to note is occupancy.  

When Elliott Cocoplum was under the seller’s watch, the 60-day occupancy fell to 85%.  

Since taking over the onsite team, the 60-day occupancy trend has risen back to 90%.  

Warm weather still plays a role in this submarket. Seasonality in the Fort Lauderdale market shows that the leasing season tends to pick up in the fall and winter months. Meaning, this property is poised to recover quickly.  

Our new property manager has worked in the Coconut Creek market for over 15 years and is confident that this property can get up to 95% occupancy and stay there. 

Amenities that will keep residents coming back. 

In other news, the renovation test units should be complete by next month, with one of those ultimately becoming the permanent model unit.  

A pre-construction meeting has already been held regarding roof replacements, one of the first large projects we’re going to do on this property.  

With a property of this size, it’s pretty common for a roof replacement to take about four months. In preparation, we have begun tree trimming throughout the property. 

A second pre-construction meeting was also held to discuss further exterior improvements to be completed at the property, such as: 

• Resurfacing the pool 
• Installing LED lighting  
• Building private fenced in yards  
• Replacing the pond fountain, Painting the exterior 
• Adding a dog park  

These projects will begin after the roof replacements are completed.  

Permanent signage is in the approval stage with the township and city. Once we receive that approval, we can then begin the scope of that work.  

In the meantime, the township has been replacing the landscaping along the frontage to enhance the curb appeal on the property. 

And last, the new designs for the amenity spaces are now complete and in the hands of the contractors providing bids. We expect to get these bids back in about two weeks. Work will begin sometime in November.  

Here are some questions from savvy investors just like you: 

What is the financing you placed on this property? 

• Put fixed agency debt on the property. 
• The loan amount is 65% of the purchase price. 
• Fixing the interest rate mitigates the risk of further interest rate rises. 
• Loan to value will decrease, helping to preserve capital. 
• Not adding additional debt increases the value and therefore overall cash flow 

Why was the current owner selling? 

• Dome Equities was looking to close out their fund and needed to sell. 
• Our relationship with the sellers gave us a leg up on the competition. 
• They had a second property they wanted to sell, Halston Lakeside in AVAF3 
• Pursuing a portfolio deal resulted in a lower overall purchase price for both properties. 

If you would like to learn more about investing in our current fund, schedule a call with our Investor Relations Team. 

By: Evan Polaski, Investor Relations Managing Director

We are proud to announce that we have officially closed on Midtown 501. Birchstone Residential, our in-house property management company, has hit the ground running and is implementing our Value-Add business plan, beginning with rebranding the property.

Here are just a few of the highlights of our Midtown 501 property:

• The school district (Chapel Hill Carrboro County School System) that serves the property has been ranked by Niche.com as the #1 school district in North Carolina.
• The 2022 year-to-date rent growth at Midtown 501 is 12.4%, compared to a US national average of 4.7%.
• The average household income within a one-mile radius of the property is greater than $127,000 per year.

Our team recently hosted a tour of this site. Watch the video below to learn more about the property and see investors’ reactions.

With the closing of this asset, we are able to offer all investors who complete their investment before the end of the year a share in the 100% bonus depreciation, and your returns will begin on January 1. You must invest before the end of the year to take advantage of this opportunity. In 2023, the bonus depreciation rate falls to 80%. Don’t miss out on your opportunity to participate in the first distribution payout.

If this isn’t reason enough to act now, we introduced for AVAF3 our Ashcroft Investment Incentive. As a Class B investor with our new waterfall structure, you have the potential to receive a higher return on your investments. With monthly distributions based on your investment’s start date, the sooner you invest, the sooner your money will begin working for you and generating distributions.

If you are ready to take advantage of the benefits of this fund, click here. If you have further questions, please do not hesitate to contact investor relations at investorrelations@ashcroftcapital.com or myself at evan@ashcroftcapital.com.

 

By: Travis Watts, Director of Investor Development

We are excited to add Midtown 501 to our Ashcroft Value-Add Fund 3 (“AVAF3”) portfolio.

For all of Ashcroft’s acquisitions, we perform extensive due diligence on the asset. In the video below, Travis Watts shares an update on our 144-step due diligence process and the transition of ownership.

Here are just a few of the highlights we found as part of our due diligence:

• The average household income of existing residents is $90,000.
• 64 percent of the residents work in health care and education or as business professionals.
• Competitors in the marketplace also have their own value-add plans, helping put upward pressure on the market for higher rent.

Watch the full video to learn more about our first property in the fund and why you should invest now.

If you are looking to join the AVAF3, the time is now. The 100 percent bonus depreciation ends this year. Additionally, with Ashcroft’s Investment Incentive, the more you invest, the more potential upside you can receive.

Ready to start investing in the AVAF3? Simply click here.

 

Travis@ashcroftcapital.com