Ashcroft Capital Announces Clo – GuruFocus.com

0

New Institutional Partners to Support Further Expansion of Ashcroft’s Sun Belt Multi-Family Portfolio

NEW YORK, June 1, 2022 /PRNewswire/ — Ashcroft Capital (“Ashcroft”), a vertically integrated, multi-family investment firm, today announced that it has entered into a strategic partnership (the “Partnership”) with institutional investors, including investment funds. investment advised by Goldman Sachs Asset Management and Blackstone Strategic Partners. The partnership will provide liquidity to existing investors across Ashcroft’s portfolio in addition to funding future acquisitions. The partnership plans to invest in value-added multi-family properties in the Sun Belt markets, and Ashcroft currently expects the partnership to acquire real estate assets at a total cost of $800 million.

Ashcroft currently has communities across Texas, Georgia and Floridaand seeks to expand in the Carolinas, Arizona, Colorado, Tennessee and Nevada. Birchstone Residential, Ashcroft’s in-house property management subsidiary, will manage all properties acquired by the Partnership.

“We are delighted to partner with such respected and experienced institutional groups,” said Frank Rossler, founder and CEO of Ashcroft. “We are grateful for their support and confidence in us as we continue to execute our value-added strategy, focusing on diligent underwriting, business plan execution and seeking to deliver a resident experience. This partnership will allow us to continue to grow at a rapid but measured pace, as we will carefully select assets that fit our investment parameters and have enormous upside potential in our key markets.”

Since its inception in 2015, Ashcroft has acquired over 14,600 apartments in nearly 50 communities. In an active 2021, Ashcroft acquired 11 properties totaling over 3,500 units in three states. Ashcroft, with more $1.9 billion of assets under management at December 31, 2021is targeting approximately 15-20 acquisitions in 2022. In addition to portfolio expansion, Ashcroft and Birchstone each have growing teams to support and accelerate ongoing acquisition efforts.

“We are thrilled to welcome these new premier sponsors, and 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 supported by such esteemed institutional players and we remain keen to acquire well-controlled assets in our target markets and further expand the portfolio.”

Ashcroft’s value-added strategy typically includes updating and modernizing amenity spaces, improving 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 for create a better life experience and make the assets more attractive in their respective markets.

Through a competitive lender selection process managed by Eastdil Secured, PGIM Real Estate, the $209.3 billion PGIM’s real estate activity, the $1.5 trillion the global asset management business of Prudential Financial, Inc. (NYSE: PRU), has committed core funding plus in support of certain acquisitions executed by the Partnership in connection with its closing, as well as to support for the financing of building renovations.

“We are delighted to further extend our lending relationship with Ashcroft Capital,” said Trevor Arnholt, Vice President, PGIM Real Estate, who led the transaction on behalf of the company. “This transaction represents a continuation of our commitment and positive outlook for the multifamily sector, particularly in the growth centers of the Sun Belt region.”

Latham & Watkins LLP acted as counsel to the general partner in connection with the offering of interests in the limited partnership.

Devon Park Advisors provided strategic capital raising services to Ashcroft Capital.

About Ashcroft Capital

Founded in 2015, Ashcroft Capital is a vertically integrated, multi-family investment firm that has acquired 47 communities comprising over 14,600 units since inception and now has over $1.9 billion of assets under management at 31/12/2021 in several high-growth metros in the Sun Belt. The company is focused 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-added multi-family real estate and aims to demonstrate expertise in extracting maximum value from every asset it acquires. Rather than trying to play cycle timing, the company is focused on acquiring excellent apartment communities in well-located submarkets of large, growing US 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 rental, maintenance, and construction management. Birchstone has been specifically designed to execute the value-added business plan for each Ashcroft property, maximizing financial returns and delivering high resident satisfaction. Committed to a people-centric culture and employee development through skills training, job enrichment and accelerated development, Birchstone seeks to provide best-in-class service that attracts new residents and enriches the way of lives of current residents.

About Goldman Sachs Asset Management Vintage Funds

Combining traditional and alternative investments, Goldman Sachs Asset Management offers clients around the world a dedicated partnership and a focus on long-term performance. As a primary investment area within Goldman Sachs (NYSE: GS), we provide investment and advisory services to the world’s leading institutions, financial advisors and individuals, leveraging our deeply connected global network and tailored expert insights, across all regions and markets, overseeing more than 2 trillion dollars of assets under surveillance worldwide March 31, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, lasting results and shared success over time. Goldman Sachs Asset Management invests across the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1998, Goldman Sachs Asset Management’s Vintage Funds have been innovators in the secondary market and have invested more than $40 billion capital since its inception. Vintage Funds provide liquidity, capital and partnership solutions to private market investors and managers worldwide within private equity strategies. Follow us on LinkedIn.

Blackstone Strategic Partners

Strategic Partners is a global leader in illiquid fund investing, including secondary investments, co-investments and primary advisory. The Strategic Partners business was founded in 2000 and has significant experience in providing limited partners with a range of liquidity solutions in illiquid asset classes on a fair, timely and confidential basis. Strategic Partners is one of the world’s most prolific secondary market players and is recognized as an innovative investor, with extensive transaction capabilities that reinforce its established reputation as an agile and responsive investor. Through its private equity, infrastructure and real estate platforms, Strategic Partners has executed over 1,800 transactions representing 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 Immobilier

As one of the largest property managers in the world with $209.3 billion in gross assets under management and administration,1 PGIM Real Estate strives to deliver exceptional results to investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a PGIM company, the $1.5 trillion the global asset management business of Prudential Financial, Inc. (NYSE: PRU).

PGIM Real Estate’s rigorous risk management, transparent execution and deep industry knowledge are backed by a 50-year legacy of commercial real estate investing, a 140-year history of real estate finance,2 and the deep local expertise of professionals in 32 cities around the world. Through its approach to investing, financing, asset management and talent management, PGIM Real Estate engages in practices that generate positive environmental and social impact, while pursuing activities that strengthen communities at worldwide. For more information, visit pgimrealestate.com.

1 Of the December 31, 2021. AUM reflected as gross. Net AUM is $137.9 billion and AAU is $45.9 billion.
2 Includes loans inherited through PGIM’s parent company, Prudential Financial, Inc.

Media contact for Ashcroft and Birchstone
Stephen Ursery
LinnellTaylor Marketing
[email protected]
303.682.3945

Media contact for PGIM Immobilier
Katlyn Lamb
Prosek Partners
[email protected]
860-391-1442

This press release contains forward-looking statements based on Ashcroft’s expectations, estimates, projections and assumptions. Words such as “expects”, “anticipates”, “plans”, “believes”, “planned”, “estimates”, variations of these words and similar expressions are intended to identify forward-looking statements that include, but are not limited to revenue projections, profits, returns, etc. These statements are not guarantees of future performance and involve numerous risks and uncertainties, which are difficult to predict. Accordingly, actual future results and trends may differ materially from what is anticipated in this press release due to a variety of factors. All interests in the Partnership having been sold, this press release has been issued for informational purposes only and does not constitute an offer of securities or a solicitation of an offer to acquire securities.

favicon.png?sn=NY74971&sd=2022-06-01 View original content to download multimedia: https://www.prnewswire.com/news-releases/ashcroft-capital-announces-closing-of-new-partnership-backed-by-institutional-investors-whiching-goldman-sachs -asset-management-and-strategic-partners-of-blackstone-301559182.html

SOURCEAshcroft Capital

Share.

Comments are closed.