Subscribe to the Ashcroft Value-Add Fund II
The Ashcroft Value-Add Fund II (AVAF2) is now available for accredited investors. Fill in the form below to join our investor portal and place your commitment.
What is the AVAF2?
In an effort to continue our focus on capital preservation and further mitigate risk while still having upside potential, we are launching the Ashcroft Value-Add Fund II.
How do you get started? How does it operate? We have prepared the AVAF2 FAQ Guide to help address commonly asked questions.
|Communities located in the growth markets of the Sun Belt including Dallas-Fort Worth, Atlanta, Orlando, Tampa, Jacksonville, Raleigh/Durham, Charlotte, and Phoenix|
|Class A/B properties with 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|
Targeted Fund Returns*
13% to 20%
Cash on Cash Returns
6.8% to 8.5%
Levered IRR (Net)
13% to 18%
Equity Multiple (Net)
1.5x 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.
Investors have the opportunity to invest in Class A and/or Class B Limited Partnership Interests.
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 50% of the remaining proceeds from disposition. This tier has a lower coupon but provides greater participation upon disposition or capital event compared to Class A Limited Partners.
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