Ashcroft Capital has announced a strategic partnership with institutional investors that include investment funds advised by Goldman Sachs Asset Management and Blackstone Strategic Partners. The vertically integrated multifamily investment firm’s new partnership will create liquidity for investors throughout the Ashcroft portfolio and future acquisitions.
“We're excited to partner with such highly respected and experienced institutional groups,” says 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.”
With plans to further invest in value-add multifamily properties across the Sun Belt region, Ashcroft expects the partnership to acquire real estate assets at an aggregate cost of $800 million. Ashcroft owns communities in Florida, Georgia, and Texas, and is looking to grow into Arizona, the Carolinas, Colorado, Nevada, and Tennessee. The firm’s value-add strategy usually includes the updating of amenity spaces, curb appeal, community signage, as well as modernizing apartment interiors to create a better living environment. Ashcroft’s in-house property management affiliate, Birchstone Residential, will manage all properties acquired by the partnership.
Eastdil Secured managed a competitive lender selection process, which resulted in PGIM Real Estate committing core-plus financing in support of certain partnership acquisitions in connection with its closing and in support of funding for property renovations.
“We are pleased to further expand our lending relationship with Ashcroft Capital. 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,” says Trevor Arnholt, vice president at PGIM Real Estate, who led the deal on the firm’s behalf.
