The Ashcroft Value-Add Fund III
The Ashcroft Value-Add Fund III (AVAF3) is now available for accredited investors.
What is AVAF3?
The Ashcroft Value-Add Fund III focuses on capital preservation and risk mitigation while still having upside potential.
|Communities located in the growth markets of the Sun Belt including Dallas-Fort Worth, Atlanta, and Orlando.|
|Class A/B properties with an excellent opportunity for value creation through improvements|
|Under performing or distressed multifamily properties|
|200+ Unit assets in highly desirable submarkets|
|$20 million to $150 million total capitalization per property|
(Avg including sale)
13% to 20%
(Avg excluding sale)
6.0% to 8.0%
13% to 18%
1.45x to 2.0x
Annual Cash-on-Cash Projections**
*Based on 5 year hold for Class B Limited Partner Investment. Target returns represent ranges for base case, downside, and upside scenarios.
**Projected cash-on-cash returns are based on base case assumptions for the properties within the Fund
Note: Projected returns are based on LP levels of Fund.
Limited Partner (A) - Class A
Class A Limited Partner’s earn a coupon of 9% per annum of such Limited Partner’s investment in Partnership (the “Class A Coupon”).
Class A Limited Partners have limited distributions upon disposition of the Property. This tier offers stronger projected cash flow and reduced risk as compared to Class B Limited Partners.
Limited Partner (B) - Class B
Class B Limited Partners earn a coupon of 7% per annum of such Limited Partner’s investment in Partnership (the “Class B Coupon”).
Upon the disposition of the Property, after payment of debt, return of Class A and Class B Limited Partner investments, payment of any unpaid Class A and Class B Coupon Amounts, and then, prorata, seventy percent (70%) to the Class B Limited Partners and thirty percent (30%) to the General Partner until such time as the Class B Limited Partners have received a cumulative amount equal to thirteen percent (13%) IRR. Then, Class B Limited Partners will receive starting at 50% and up to 65%, dependent on the total investment amount, of the remaining proceeds from disposition up. This tier has a lower coupon but provides greater participation upon disposition or capital event compared to Class A Limited Partners.
If you invest more with us, you get more potential upside on your returns. See the structure in the chart below:
Benefits of Investing in a Fund
- Spreads out investor equity over multiple acquisitions
- Greater exposure to investments in various markets and asset classes
- Ability to invest in different individual property business plans and hold periods
- Provides the opportunity to participate in upside on property price appreciation upon sale, refinances, and supplemental loans
- Diversification offers the ability to reduce risks while offering the potential for higher returns
- Potential tax benefits for investors such as pass-through depreciation opportunities and 1031 exchanges
Disclaimer: This investment will be filled on a first-come, first--fund basis and is open to accredited investors only. All investment information will be made available in the investor portal.