Ashcroft Capital Announces Recapitalization of the Avery

Company Gears Up for an Active 2025 on the Acquisition Front

NEW YORK, Jan. 7, 2025 /PRNewswire/ -- Ashcroft Capital, a fully integrated multifamily investment firm, today announced the recapitalization of the Avery, a luxury garden-style community in Lewisville, Texas. The recapitalization was achieved when the previous owner—a joint venture between Ashcroft and a private equity limited partner—sold the property to a joint venture between Ashcroft and Virtus Real Estate Capital.

The Avery, which features 304 apartment homes, is one of Ashcroft's 18 apartment communities in the Dallas/Fort Worth Metroplex. The recapitalization was one of two acquisitions that Ashcroft completed in the second half of 2024, joining the firm's late-summer acquisition of Halston Waterleigh, a luxury garden-style community just outside of Orlando, Fla.

"We were very pleased to complete this recapitalization with an optimal partner, and it certainly was a positive transaction for all involved," said Frank Roessler, founder and CEO of Ashcroft. "Avery is a great property of ours with a strong demographic that we wish to hold in our portfolio for the long term. Being able to do right by our selling limited partner while at the same time finding a great opportunity for a new LP is all we can ask for. We were able to do this by operating a best-in-class property management company, having deep LP relationships with great partners like Virtus and by creating value through continuing our business plan and enjoying the benefits of our fixed debt." 

"We are very excited to have the opportunity to partner with such a well-positioned, vertically integrated group as Ashcroft, with economies of scale, in a market we remain bullish on," said Josh Colter, managing director of Virtus. "While many markets have had to deal with softening fundamentals, Dallas has the highest absorption in the country, one of the most robust economies and leads the country in nominal demand. We are confident Ashcroft's team will keep adding value to this property so the residents can continue enjoying a great quality of life at Avery."

Birchstone Residential, Ashcroft Capital's in-house property management and construction management company, oversees the onsite operations of the Avery.

Looking ahead to the new year, Roessler anticipates increased transaction volumes for Ashcroft and for the multifamily industry as a whole. The company is currently under contract to acquire three off-market apartment communities and to sell two properties in the first quarter. Overall, Ashcroft hopes to acquire between five to eight apartment communities in 2025.

"We're very optimistic about transactions picking up this year," he said. "We don't think we'll see systemic distress, but sellers are adjusting their expectations and in some ways capitulating to a new market, while buyers and equity partners are becoming more practical in what they're targeting. Ultimately, our hope is that 2025 is less of a banner year and more of a return to normality."

While rent growth and occupancy rates have softened somewhat in recent years due to a wave of new apartment construction, the long-term fundamentals of the apartment sector remain strong, according to Roessler. Population growth in the Sun Belt continues, unit deliveries have slowed significantly, and new starts are few and far in between, all of which should create great opportunities for Ashcroft and Birchstone, Roessler added.

"We believe that demand for apartments will remain robust over the long term," he said. "And with our property management company and our in-house procurement department, which allows us to acquire our renovation materials and renovate our communities at a significantly reduced cost, Ashcroft is uniquely positioned to capitalize on the health of the apartment industry and deliver targeted, risk-adjusted returns to our investors."

Ashcroft's portfolio stretches across Georgia, Florida, North Carolina and Texas. The company also is exploring additional markets in the Sun Belt. 

About Avery Apartments
Located at 350 Continental Drive in Lewisville, Texas, the Avery features one-, two- and three-bedroom homes ranging from 750 to 1,258 square feet. The homes feature expansive walk-in closets, crown molding, wood-inspired flooring, two-tone paint, stainless steel appliances, quartz countertops, jetted soaking tubs and pendant lighting. Community amenities include a fitness center with free weights, cyber cafe with WiFi, outdoor kitchen, valet trash service, pet park, resort-inspired swimming pool and 24-hour emergency maintenance. 

About Ashcroft Capital
Established in 2015, Ashcroft Capital is a fully integrated multifamily investment firm that has acquired $3.7 billion of multifamily assets, totaling 22,000 units, across several fast-growing Sun Belt metropolitan areas since its inception. The firm prioritizes capital preservation while aiming to deliver robust, risk-adjusted cash-on-cash returns to its investors. Supported by high-net-worth individuals, family offices and institutional capital, Ashcroft Capital specializes in value-add multifamily properties that it upgrades with its high-quality renovation materials. The company's approach emphasizes optimizing the value of each asset, and the firm focuses on acquiring top-tier apartment communities in prime submarkets of large, expanding U.S. cities. Ashcroft is committed to enhancing the living standards of the residents in every community it manages.

About Birchstone Residential
Birchstone Residential serves as the internal property management arm of Ashcroft Capital, offering a full suite of essential services, including leasing, maintenance and construction management. Specifically designed to implement the value-add strategy for Ashcroft's properties, Birchstone focuses on maximizing financial returns while ensuring high levels of resident satisfaction. With a strong commitment to fostering a people-first culture, the company emphasizes employee growth through training, job enrichment and accelerated career development. Birchstone is dedicated to delivering exceptional service that not only attracts new residents but also enhances the quality of life of existing residents.

About Virtus Real Estate Capital
Virtus Real Estate Capital is one of the longest tenured private equity real estate fund managers in the U.S. focused exclusively on cycle resilient needs-based property sectors, such as healthcare, education, storage, and middle-income workforce housing. The Firm was founded in 2003 in Austin, TX. The Firm has acquired or developed nearly 300 commercial properties totaling approximately $7 billion throughout the U.S. Virtus is known across the industry for its deep expertise in social infrastructure sectors and its commitment to people, which is driven by a strong corporate culture around its four core values: Thoughtful Evolution, Resilience, Honorable Action, and Purposeful Work.

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SOURCE Ashcroft Capital