Residence at Midtown – Quality Dallas Area Apartments

Residence at Midtown
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Frank Roessler serves as founder and managing principal with Ashcroft Capital and guides all aspects of a company focused on the acquisition of properties that offer excellent capital improvement and repositioning potential. Frank Roessler and his team represent a portfolio valued at $135 million and encompassing exceptional Dallas properties such as the Residence at Midtown.

Featuring remodeled interiors and with quick, convenient freeway access, the community offers two-bedroom living that is within minutes of premier dining, shopping, and entertainment locations. The luxurious apartments are within a community that has a playground and pool, as well as on-site management, maintenance, and night patrol.

The Efficiency model floor plan is 456 square feet, and units come with granite countertops, stainless steel appliances, and two-tone paint. Residents also have walk-in closets that maximize storage space. The largest unit is nearly 1,000 square feet and includes two bedrooms and 1.5 bath, as well as all the standard amenities.

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Underwriting Basics

Underwriting
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Holding a bachelor of science in electrical engineering from Bucknell University as well as an MBA from the Anderson School of Management at UCLA, Frank Roessler founded Ashcroft Capital in 2014. Under the direction of Frank Roessler, Ashcroft’s underwriting strategy is based on comprehensive research and analysis.

Underwriting is the systematic and detailed analysis of a loan application to determine the amount of risk associated with making the loan. This analysis is based on the credit-worthiness of a potential borrower and the value of the property to be purchased. The underwriting process also evaluates the borrower’s financial needs, the value of collateral assets, and the ability of the borrower to repay the debt.

Underwriting a commercial real estate loan involves determining, among other things, an accurate net operating income (NOI), the loan-to-value ratio (the ratio of the loan amount to the property value), and the debt-service-coverage ratio (to verify the cash flow needed to cover loan payments is available). The information contained in an underwriting is critical for investors to fully understand the risks and potential gains of an investment.

Commercial Real Estate Evaluation Ratios

Evaluation Ratios
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Prior to forming the national investment firm Ashcroft Capital, financial services professional Frank Roessler worked at M&A Real Estate Partners, where he assisted with acquisitions including underwriting and due diligence. As the principle of Ashcroft Capital, Frank Roessler utilizes his years of experience and extensive network of brokers and property managers to identify multifamily real estate investment opportunities with a high risk/return ratio.

There are a variety of ratio calculations investors can use to evaluate a property, including:

Capitalization Rate. The capitalization rate is a risk and reward calculation where a higher rate indicates more risk, and thus, a higher potential return. The capitalization rate evaluates the property’s performance for only the first year.

Operating Ratio. This ratio compares the annual income to what’s required to cover the property’s operating expenses (including debt). An operating ratio above 100 indicates the property’s annual income is not covering expenses.

Debt Coverage Ratio. This calculation is used to determine if a property will be able to cover operating expenses plus mortgage payments. An accurate debt coverage ratio requires all income and all expenses be identified.