Ashcroft Capital’s New Apartment Partnership Backed by Blackstone, Goldman Sachs

Investment funds advised by Goldman Sachs Asset Management and Blackstone Strategic Partners joined with multifamily investment firm Ashcroft Capital this month to help it expand its Sun Belt holdings.

The partnership expects to invest in value-add multifamily properties with an estimated aggregate cost of $800 million. 

The partnership already has acquired apartment communities with a total cost exceeding $600 million done through a recapitalization of approximately 10 apartment communities that were already in Ashcroft’s portfolio. These communities are located in Texas and Florida and total approximately 3,000 apartment homes.

During the next 18 months or so, the partnership will acquire approximately $100 million of additional value-add apartment communities in the Sun Belt and up to $100 million is expected to be earmarked for value-add capital improvements across the portfolio of existing and to-be-acquired assets. 

Ashcroft Seeking to Add 20 Apt Communities in 2022

Founded in 2015, Ashcroft has acquired more than 14,600 apartment homes spanning nearly 50 communities. The company currently owns more than 30 properties for a total of more than 11,000 units throughout Texas, Georgia and Florida. 

Ashcroft Capital is seeking to expand into the Carolinas, Arizona, Colorado, Tennessee and Nevada. In all, Ashcroft is seeking to add up to 20 apartment communities to its portfolio through acquisitions in 2022. 

Strategy Includes Modernization of Amenities

Birchstone Residential, Ashcroft’s in-house property management firm, manages all of the communities in Ashcroft’s portfolio. Ashcroft specializes in value-add multifamily real estate and its strategy generally includes an update and modernization of the amenity spaces, improved curb appeal and upgrades to landscaping and community signage. 

Frank Roessler, founder and CEO of Ashcroft, tells GlobeSt, “Through partnerships with entities like Goldman and Blackstone, we will be extremely well-positioned to grow at a brisk yet strategic pace by carefully acquiring properties that fit within our stringent investment standards.”

Bill Kay, managing director of capital markets for Ashcroft, tells GlobeSt, “As we grow our portfolio, we have sought to expand and deepen our relationships within the institutional investment community.”

PGIM Real Estate Committed Core Plus Financing

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, 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.

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.