January 31, 2024
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.