New institutional partners will support the
further expansion of Ashcroft's Sun Belt multifamily
portfolio
NEW
YORK, June 1, 2022 /PRNewswire/ -- 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.
About Ashcroft Capital
Founded in 2015, Ashcroft Capital is a vertically
integrated multifamily investment firm that has acquired 47
communities comprising over 14,600 units since its inception and
now has over $1.9 billion in assets
under management as of 12/31/2021
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 aims
to exhibit 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.
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.
About Goldman Sachs Asset Management
Vintage Funds
Bringing together traditional and alternative investments,
Goldman Sachs Asset Management provides clients around the world
with a dedicated partnership and focus on long-term performance. As
the primary investing area within Goldman Sachs (NYSE: GS), we
deliver investment and advisory services for the world's leading
institutions, financial advisors and individuals, drawing from our
deeply connected global network and tailored expert insights,
across every region and market—overseeing more than $2 trillion in assets under supervision worldwide
as of March 31, 2022. Driven by a
passion for our clients' performance, we seek to build long-term
relationships based on conviction, sustainable outcomes, and shared
success over time. Goldman Sachs Asset Management invests in the
full spectrum of alternatives, including private equity, growth
equity, private credit, real estate and infrastructure. Established
in 1998, the Vintage Funds within Goldman Sachs Asset Management
have been innovators in the secondary market and have invested over
$40 billion of capital since
inception. The Vintage Funds provide liquidity, capital and
partnering solutions to private market investors and managers
worldwide across private equity strategies. Follow us on
LinkedIn.
Blackstone Strategic
Partners
Strategic Partners is a global leader in illiquid fund
investing, including secondaries, co-investments and primary
advisory. The Strategic Partners business was founded in 2000 and
has significant experience in providing limited partners a range of
liquidity solutions across illiquid asset classes on a fair, timely
and confidential basis. Strategic Partners is one of the most
prolific secondary market participants in the world and is
recognized as an innovative investor, with broad transaction
capabilities that reinforce its established reputation as a nimble
and responsive investor. Through its private equity, infrastructure
and real estate platforms Strategic Partners has executed over
1,800 transactions that represent interests in approximately 4,900
underlying fund interests managed by over 1,500 different financial
sponsors. Strategic Partners is a business unit of Blackstone
(NYSE: BX), the world's largest alternative asset manager.
About PGIM Real Estate
As one of the largest real estate managers in the world with
$209.3 billion in gross assets under
management and administration,1 PGIM Real Estate strives
to deliver exceptional outcomes for investors and borrowers through
a range of real estate equity and debt solutions across the
risk-return spectrum. PGIM Real Estate is a business of PGIM, the
$1.5 trillion global asset management
business of Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate's rigorous risk management, seamless execution,
and extensive industry insights are backed by a 50-year legacy of
investing in commercial real estate, a 140-year history of real
estate financing,2 and the deep local expertise of
professionals in 32 cities globally. Through its investment,
financing, asset management, and talent management approach, PGIM
Real Estate engages in practices that ignite positive environmental
and social impact, while pursuing activities that strengthen
communities around the world. For more information visit
pgimrealestate.com.
1 As of Dec. 31,
2021. AUM reflected as gross. Net AUM is $137.9 billion and AUA is $45.9 billion.
2 Includes legacy lending through PGIM's parent
company, Prudential Financial, Inc.
Media Contact for Ashcroft and Birchstone
Stephen Ursery
LinnellTaylor Marketing
stephen@linnelltaylor.com
303.682.3945
Media Contact for PGIM Real Estate
Katlyn Lamb
Prosek Partners
klamb@prosek.com
860-391-1442
This Press Release contains forward-looking statements that are
based on Ashcroft's expectations, estimates, projections and
assumptions. Words such as "expects," "anticipates," "plans,"
"believes," "scheduled," "estimates," variations of these words and
similar expressions are intended to identify forward- looking
statements which include, but are not limited to projections of
revenues, earnings, returns, etc. These statements are not
guarantees of future performance and involve numerous risks and
uncertainties, which are difficult to predict. Therefore, actual
future results and trends may differ materially from what is
forecast in this Press Release due to a variety of factors. All of
the interests in the Partnership having been sold, this Press
Release has been issued as a matter of record only, and does not
constitute an offering of any security, or as a solicitation of an
offer to acquire any security.
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SOURCE Ashcroft Capital