Good Founders Will Be Terrible CEOs (If They Don’t Have These Skills)

By: Frank Roessler

When we talk about founders, we tend to imply an “and” at the end of the title. A founder isn’t just the person who came up with an idea for a new business — we also expect them to be its chief executive, president, or public face. We assume that after an entrepreneur dedicates their time and energy to starting a venture, they’ll want to take the lead on sailing it into profitability. The apparent connection between founder and CEO is so strong that on some level, we even expect the skills that make founders so successful in the earliest days of their businesses to translate seamlessly into their post-founding leadership efforts.

As someone who has been both a founder and president, I can tell you definitively — that assumption is off-base.

There is an enormous difference between founding a company and leading one. The two require entirely different skill sets; to be completely honest, I’m not at all surprised that some entrepreneurs prefer to focus on one area or the other. Those who choose to found and lead a company, as I did, usually have to undergo a difficult transition.

Here’s the issue — when you decide to establish a business, you’re essentially starting on a creative and individually-driven mission. You aren’t responsible for an extensive employee base, you don’t need to manage multiple departments, and you don’t have a company to lose (yet). You have an idea, and if you put in a tremendous amount of effort and maneuvering, you have a shot at bringing it to market as a reality.

As startup culture commentator Michal Bohanes describes the transition in an article for Forbes: “Once a business idea takes root and a company starts growing, the main priority isn’t being an entrepreneur but instead becoming a manager. It’s taking care of the mundanities of running a business: Hiring, managing people, quality control, finance, customer service etc.”

When a business needs a CEO, the entrepreneur’s work as a founder is all but done. They don’t need the individual drive or sheer creativity that pushed them to success as an independent entrepreneur anymore — instead, they need to have the charisma to articulate a vision, the operative skills to build a strong organization, and the strategic business planning abilities to set a course towards success.

I’ll give a personal example. When I started Ashcroft Capital, I did so because I saw an opportunity to create a firm that could take a fiduciary approach to the acquisition and management of multifamily real estate investment opportunities across the United States. It took time, resources, and more than a few sleepless nights, but I managed to make my idea a reality and become a successful founder. By the time that I took on the role as Ashcroft’s president, I thought I had made it through the hardest part of the entrepreneurial process and could rely on the skills I’d honed as a founder to carry me as a company leader.

As it turns out, however, the transition from founder to president was more complex than I had ever anticipated.

You see, it’s all too easy to develop tunnel vision during the founding process. While I was aware during those early stages that I would eventually need to shift into an executive role and act as a team leader, I was more focused on what I had to accomplish as an individual founder to build the firm. As I began to take on more leadership responsibilities, however, I realized that being successful as an entrepreneur-founder and doing well as an entrepreneur-president required two very different and distinct skill sets.

It’s a heck of a transition.

Today, I have the “and” in my title. I currently stand as Ashcroft Capital’s Founder and Managing Partner. Here are a few pointers that might, from my own experience, help other entrepreneurs successfully add the conjunction to theirs.

Live in a Learning Mindset

The shift into executive leadership has a steep learning curve, especially for first-time founders. They need to be humble enough to put their preconceptions about the role and its requirements aside and focus on learning more about what the company needs from them. Listening to industry veterans and advisors is a necessity, especially if a founder doesn’t have prior leadership experience.

Learning to be humble enough to listen and accept suggestions, however, can be difficult for founders. During the entrepreneurial process, being stubborn and overconfident is almost a requirement. A founder’s assurance empowers them to build a business even in the face of criticism and adversity — and then holds them back from being effective leaders after the company is established. Entrepreneurs need to know when to shift gears and let down their founder-era defenses.

As CEO Jeff Booth noted of his own experience with what he calls the arrogance-humility cycle, “It takes overconfidence to stay the course through adversity but a humble mind to evolve and iterate. How, exactly, do you know when it’s the right time for each? The moment where success is knocking down your door and everyone starts telling you that you’re right—that’s the time to get humble, fast.”

Good leaders can’t be intractable founders; if you want to succeed, accept that you don’t have all of the answers and open yourself to learning.

Hire the Best People You Can and Listen to Them

I like to say that it’s easy to lead when the people around you are smart and talented — but you need to be in a position to listen. It can be tempting for founders to micromanage or hover over every business decision or staff action like a parent behind a toddler, worried that a single wrong decision will topple the company. Founders need to hire the best people they can and learn to listen to them. Once they do, they will gain the confidence they need to step back and trust in their team.

Part of this does come back to humility; I knew that I couldn’t bring Ashcroft Capital’s portfolio to stand on sturdy legs by myself, so I brought in the best people I could find in the industry to help me create a thriving company. For example, our director of acquisitions, Scott Lebenhart, came from eleven years of experience working at one of the largest private equity firms in New York City; our asset manager, Alex Raggio, ran a $750 million portfolio before he came to work for us; and every one of our analysts is a top-notch performer. Success in business is a group endeavor. Hire people for their skills, industry knowledge, and ability to work effectively within a team, and then trust that they will surpass your expectations.

Entrepreneurship isn’t for everyone. Building a business takes more time, effort, and resources than most would ever guess — and running one after the building is done demands even more from a founder. But if you have the drive to build and lead a venture, my advice for entrepreneur-founders who want to become entrepreneur-leaders is this: know what your organization needs, then be humble, open-minded, and dedicated enough to provide it.

Ashcroft Capital Acquires Elliot Baymeadows Apartments

Purchase of 352-unit community adds to apartment owner’s growing Jacksonville presence.

Ashcroft Capital, a fully integrated multifamily investment firm, today announced its acquisition of Elliot Baymeadows (formerly Green Tree Place), a garden-style apartment community in the Royal Lakes neighborhood of southern Jacksonville. Birchstone Residential, Ashcroft Capital’s in-house property management company, has assumed management of the community. 

Elliot Baymeadows, which offers 352 apartment homes, boasts a convenient location just east of Interstate 95 and within a quick commute of the key retail districts of Jacksonville and St. Augustine. The property was purchased through Ashcroft Capital’s new $150 million Value Add Fund, and it becomes Ashcroft’s second community in Jacksonville, joining Southside Villas, which is located just south of downtown. Ashcroft will perform a series of interior and exterior renovations at Elliot Baymeadows, which was originally built in 1986.

“We are big believers in the Jacksonville market, and we look forward to augmenting our presence in the city,” said Frank Roessler, founder and chief executive officer of Ashcroft Capital. “We believe Elliot Baymeadows has a tremendous upside with its opportune location within a desirable, commuter-friendly neighborhood. The community already possesses a charm of its own, and our planned upgrades will deliver the quality finishings that residents of this submarket have come to expect.”

Since its inception, Ashcroft Capital has acquired more than 10,000 units in Jacksonville, Dallas-Fort Worth, Orlando, Fla., and Tampa, Fla. Last month, the company also entered the metro Atlanta market with its acquisition of Halston Riverside, and it continues to pursue acquisition opportunities there. Ashcroft Capital is also looking to enter the Charlotte, N.C., Raleigh-Durham, N.C., and Phoenix markets. 

The in-home renovations at Elliot Baymeadows will include the installation of quartz countertops, undermount sinks, stainless steel appliances, tile backsplashes, vinyl plank flooring, new lighting and plumbing fixtures and a refreshed color scheme. Refurbishments are also planned for the community’s clubhouse and fitness facilities, while building exteriors will be repainted. The community’s amenities package will be enhanced as well by converting tennis courts to sports courts and adding package locker systems.

Situated at 9480 Princeton Square Boulevard S, Elliot Baymeadows is within moments of several fine dining options, a Publix Supermarket and the St. Johns Town Center open-air mall. Residents can access I-95 and nearby Routes 152 and 115 to easily travel to nearby white sand beaches, a wide array of schools and several key locales throughout the metropolitan area.

“We’re not shy in our ambition to stand out as one of the top living options in the market,” said David Deitz, president of Birchstone. “We look forward to implementing our signature brand of people-first service at the community and are eager to connect with our newfound residents. The location with the lake views and easy commuter options speaks for itself.  Without a doubt, Elliot Baymeadows will be a leading property within this submarket of Jacksonville.”   

Elliot Baymeadows offers a variety of one- and two- bedroom apartment homes, ranging in size from 500 to 1,100 square feet. Apartment homes feature nine-foot ceilings, energy-efficient appliances, breakfast bars, in-home washers and dryers, large closets and private patios or balconies.

Common-area amenities at the pet-friendly community include a 24-hour fitness center, two swimming pools, courtyard, picnic and grilling areas, waterfront, two tennis courts, playground and pond. Residents also have access to bike storage and a package-delivery service.

About Ashcroft Capital
Founded in 2015, Ashcroft Capital has acquired over $1.2 billion of assets and 10,000 units. The firm focuses on capital preservation while striving to return strong, risk-adjusted cash on cash to investors. Ashcroft is capitalized with high net worth, family office and institutional capital. Within the real estate industry, Ashcroft specializes in value-add real estate and exhibits an expertise in extracting maximum value from every asset it acquires. Rather than attempting to play market timing, the firm strives to acquire excellent apartment communities within well-located submarkets of large and growing U.S. metroplexes.

About Birchstone Residential
Birchstone Residential is a culture-based property management company that oversees the day-to-day operations of apartment communities owned by Ashcroft Capital. At Birchstone, the mission is to strive for excellence in every shape and form, and live that every day through authenticity and transparency. Birchstone hires the best talent, and then stands back and lets them shine. Their empowered and passionate team members translate into a first-class level of customer service – and that translates into residents who love where they live.

Media Contact
Stephen Ursery
LinnellTaylor Marketing
stephen@linnelltaylor.com
303.682.3945

SOURCE Ashcroft Capital

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Why Culture Should Be the Cornerstone of Your Company

Culture should be the cornerstone of every company. Every business owner should know this by now, but many don’t realize what exactly culture should be (it goes beyond just pizza parties and paid lunches) and why it’s so crucial to the success of their companies. 

The title of this article should read as an obvious statement. It’s a statement that most business owners would never disagree with. Yet it’s frequently the last thing they focus on, which can be an enormous mistake. One can create the ‘right’ company from a purely business perspective. Still, if the culture doesn’t flourish along with the business talent who helped create it, its success won’t stay for long, and operations will suffer.

When I founded Ashcroft Capital, a real estate investment firm that acquires and improves large multifamily communities in top U.S. metros, I knew culture needed to be a strong focus. When Birchstone Residential, our own property management company, and Birchstone Construction, our in-house construction arm, were founded, it was equally important to recognize and cultivate the individuality of each company. While these three companies are connected, they are uniquely different and required great attention to ensuring we were creating the right culture for each – essentially from scratch. Today, our companies are built with more than 200 team members who thrive on each organization’s unique culture.

Of course, the knowledge and leadership experience you’ve acquired over the years will influence every new business you’re part of, but you can’t simply copy and paste. What worked for one company won’t necessarily work for another. So, as I thought about what I wanted Birchstone Residential to evolve into, how I wanted it to stand out from the competition, it was obvious: culture. Multifamily is an interesting industry where there are various customers – your investors, your residents, and your teams. I knew the cornerstone to effectively connect with and service all three audiences was through our culture. 

Culture has become somewhat of a buzzword – with many companies taking a passive approach to culture. They might believe it’s not something they can control, so they sometimes neglect it and think it will work itself out. Like HubSpot Chief People Officer, Katie Burke, says: “When it comes to culture, most companies have a can’t-do attitude.”

But leaving your culture up to chance is destructive not only to your employees and your clients but also to your organization. Culture isn’t just pizza parties or paid lunches; it isn’t a strategy document created with good intentions that never gets looked at again. Culture is the way a company lives and breathes. To nurture culture, leaders must commit to intentional, distinct, and purposeful initiatives. 

Birchstone Residential’s mission is simple: We are people serving people.

And here is why we believe that culture is so important:

Strengthening Loyalty

If your teams dread coming into work, you have a problem. Disengaged employees don’t value their work, nor do they find much purpose in collaborating with other team members to improve operational efficiency and client service. And professional development? It’s futile if employees don’t feel united with the business.

It’s all about connectedness. Our team laughs hard together, they work better together, and collaboration soars. They’ve become a very tight-knit group and consider themselves family (their words, not mine). They tackle challenges and accomplish goals together because they push each other to go the extra mile. They know they have a support system behind them to help them through the challenges and celebrate their wins together. 

Employees want to feel like they are contributing to something that’s larger than themselves. Jim Goodnight, co-founder and CEO of SAS, wrote on his company’s website: “Treat employees like they make a difference, and they will.” I couldn’t agree more. 

Happy employees are 45 percent more productive than team members who are just ‘satisfied’ in their careers. This means that more work will get done, which will also enhance your client service efforts.

Happy employees, happy customers. 

Service Above Self

Clients won’t be able to love a company unless its employees love it first. When you establish a culture-based company that empowers and develops high-performing employees, then, and only then, can that passion extend to your customers. 

Hiring exceptional employees is an investment, and you want to be sure you’re investing the time and resources into the right people. We equip and empower our team with the resources and opportunities that will allow them to succeed with confidence. If they discover an internal or client-facing issue, they know they have the insight and expertise to resolve it. If they see an opportunity to accelerate our success, they have the assurance to bring it to our attention. 

But providing the best service doesn’t just depend on a person’s professional development, it’s also contingent upon how leaders chose to invest in their wellbeing as well. 

Curating Your Brand Identity

Your culture is the life force of your company. It’s what makes you unique and sets you apart from competitors in your industry. 

If you boast authenticity, breathing that into your culture will show your clients that you are unique. The more your clients identify and connect with your brand, the more they’ll want to interact with you and advocate for you. You can only curate this relationship through your employees. But remember, you cannot do this through one person alone. It takes executive oversight, intention, purpose, and committed participation from everyone at the company. 

We promised our clients and community that we are — and always will be — sincere, genuine, honest, and transparent. Our culture is the glue that keeps our organization together, and our clients are the ones that stand to benefit from such an engaged workforce. 

You need to build a community within your business that people want to be a part of. That’s making culture the cornerstone of your community. 

About The Author

Frank Roessler

Frank Roessler is the Founder & Managing Partner of Ashcroft Capital and Founder of Birchstone Residential.

Ashcroft Capital Enters Atlanta Market with Acquisition of Halston Riverside

 Ashcroft Capital, a fully integrated multifamily investment firm, today announced its acquisition of Halston Riverside (formerly Retreat at Riverside), a garden-style apartment community in the Atlanta suburb of Lawrenceville. Birchstone Residential, Ashcroft Capital’s in-house property management company, has assumed management of the community.

The transaction marks Ashcroft Capital’s entry into metro Atlanta. Since its inception, the company has acquired more than 10,000 units in Dallas-Fort Worth, Orlando, Fla., Tampa, Fla., and Jacksonville, Fla., and is now pursuing acquisition opportunities in Atlanta, Charlotte, N.C., Raleigh-Durham, N.C., and Phoenix. Halston Riverside is the first community purchased through Ashcroft Capital’s new $150 million Value Add Fund, which aims to acquire five to seven assets in targeted markets.

“Halston Riverside represents the type of excellent value-add opportunity that our fund is targeting,” said Frank Roessler, founder and chief executive officer of Ashcroft Capital. “It has a history of institutional ownership, and the property has been very well maintained. At the same time, we have identified ways to add significant value through rebranding and renovations. In addition, Lawrenceville continues to show a strong resilience to the economic effects brought upon by the pandemic.”

The in-unit renovations at Halston Riverside will include the installation of quartz countertops, undermount sinks, stainless steel appliances, tile backsplashes in kitchens, vinyl plank flooring and new cabinet fronts. Improvements to the community’s clubhouse, dog park and tennis courts are also planned.

“A large part of our strategy is to identify value-add assets in high-growth markets that will support our business plan of providing superior unit renovations at cost-appropriate pricing,” Roessler said. “In Atlanta, we plan to rapidly establish a large footprint of 5,000 units or more in order to achieve economies of scale, market leverage and recruitment strength.”

Situated at 1000 Duluth Highway, near I-85 and Highway 316, Halston Riverside is convenient to both Atlanta and Athens, which is home to the University of Georgia and a thriving music, arts and restaurant scene. Located 30 miles northeast of downtown Atlanta, the community features 412 apartment homes and offers residents close proximity to highly regarded schools, a host of restaurants and entertainment venues and abundant outdoor recreational activities.

“The renovations will help an already outstanding community stand out even more against the competition,” said David Deitz, president of Birchstone. “We also believe that our tech-forward, supportive culture and dedication to best-in-class customer service will play a critical role in driving performance. At Halston Riverside and throughout the Ashcroft portfolio, this will result in communities that provide exceptional experiences to our prospects and residents and, in turn, maximize revenue and NOI.”   

Halston Riverside offers an array of one- and two- bedroom apartment homes. Some units feature nine-foot ceilings, garden tubs, abundant closet space and ceiling fans. Select homes feature vaulted ceilings, private outside storage, washers, dryers and built-in bookshelves with computer desks for residents who work from home. Attached or detached garages also are available.

Community amenities include package lockers with 24/7 access, controlled gate entry, four resort-style pools with waterfalls, a playground, barbecue grills with picnic areas, state-of-the-art fitness center and a new cyber lounge.

About Ashcroft Capital
Founded in 2015, Ashcroft Capital has acquired over $1.2 billion of assets and 10,000 units. The firm focuses on capital preservation while striving to return strong, risk-adjusted cash on cash to investors. Ashcroft is capitalized with high net worth, family office and institutional capital. Within the real estate industry, Ashcroft specializes in value-add real estate and exhibits an expertise in extracting maximum value from every asset it acquires. Rather than attempting to play cycle timing, the firm strives to acquire excellent apartment communities within well-located submarkets of large and growing U.S. metroplexes.

About Birchstone Residential
Birchstone Residential is a culture-based property management company that oversees the day-to-day operations of apartment communities owned by Ashcroft Capital. At Birchstone, the mission is to strive for excellence in every shape and form, and live that every day through authenticity and transparency. Birchstone hires the best talent, and then stands back and lets them shine. Their empowered and passionate team members translate into a first-class level of customer service – and that translates into residents who love where they live.

Media Contact
Stephen Ursery
LinnellTaylor Marketing
stephen@linnelltaylor.com
303.682.3945

SOURCE Ashcroft Capital

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Pinellas Apartments Sell for $120 Million

St. Petersburg, Largo complexes demonstrate that demand for multifamily rentals in the county remains strong, despite the coronavirus pandemic.

A pair of Pinellas County apartment complexes have sold for a combined $120 million, highlighting the notion that despite the COVID-19 pandemic the sector remains in demand among investors.

In St. Petersburg, 930 Central Flats sold for $64 million to a group led by Westerville, Ohio-based White Oak Partners, according to county property and state records.

Meanwhile, in Largo, New York-based Ashcroft Capital acquired the 416-unit Anthem Clearwater complex for $55.75 million, records show.

The 2770 Roosevelt Blvd. complex, previously known as the Woodland Key Apartments, last sold in July 2014 for $18 million, property records show. Rents in the complex, which was completed in 1974 and renovated in late 2018, range from $1,031 a month to $1,400 monthly, according to researcher Apartments.com.

Frank Roessler, Ashcroft Capital’s founder and CEO, says the company will spend about $5 million to upgrade Anthem Clearwater, with new kitchens, interior lighting and paint, landscaping, roofs and signage. The company also intends to install a playground and package locker for residents.

“We want our residents to be happy and love the community and stay there for a long period of time,” Roessler says.

Ashcroft Capital, which was formed in 2014, owns 23 properties with 7,421 units valued at nearly $1 billion, including the Mystic Bay community in Tampa Bay, according to the company’s website.

The six-story 930 Central Ave. project contains 218 units and was completed in the city’s Edge District in 2018. Rental rates there range from $1,428 per month for a studio apartment to $3,253 monthly for a two-bedroom unit, Apartments.com notes.

In addition to 930 Central Flats, White Oak also owns the Courtney Trace and The Addison apartments, both in Brandon, according to its website.

In all, White Oak controls 42 properties with 12,732 units in 10 states and valued at $1.9 billion, its website states.

Executives fromWhite Oak Partners did not return a telephone call for comment.

Lifting the Amenities Lockdown: What Are Today’s Must-Haves?

Work from home is expected to be a lasting trend, and that is informing a number of choices around the amenities a building may offer.

Amenities have always been seen as selling points for multifamily properties, providing incentives for residents to sign a lease or stay on for another year. From fitness centers and golf simulators to pet parks and movie theaters, these spaces provide opportunities for residents to interact with one another and to feel like they are getting the most for their money.

When the coronavirus pandemic hit hard in March 2020, however, many amenity spaces were quickly shut down while capacity and operating hours were curtailed at other spaces.

Over the past year, property owners and managers have had to work diligently to repurpose, reposition and revolutionize how these spaces can be used in order to keep residents interested and satisfied.

“It really comes down to convenience and flexibility,” said Frank Roessler, founder & CEO of Ashcroft Capital. “Home isn’t just a place to lay your head down at night anymore. Residents are even more focused on comfort, space and amenity packages.”

According to a survey from the Stanford Institute for Economic Policy Research, 42 percent of the U.S. labor force is now working from home full time. Additionally, the share of working days spent at home is expected to increase fourfold from pre-COVID-19 levels—from 5 percent to 20 percent. With this, amenities have become even more important, providing a much needed escape for residents from the confines of their own homes. So with the vast amount of available options, what are the wisest investments that owners and operators can make?

BALANCING ACT

Although the coronavirus will be behind us someday, that doesn’t mean residents will be flocking back to the office full-time. Therefore, there is an increasing need for remote work amenities, particularly those that promote a better work-life balance. Further, amenities are now being adapted to more individualized use, ranging from scheduling formerly shared spaces to making Wi-Fi more readily available throughout the community to support higher bandwidth.

According to a resident survey conducted by SatisFacts, some of the top amenities residents claimed would assist them in working from home were faster internet speeds; wireless self-service printing, copying and scanning; outdoor working spaces; individual work pods; coworking spaces; and video chat booths.

These technology upgrades would help mitigate some of the challenges the surveyed remote workers are currently facing, including balancing the work-life schedule (36.6 percent), finding a dedicated workspace (35.9 percent) and being able to focus (33.1 percent).

Once the pandemic is over, working from home is still expected to be the favored choice amongst many workers, and, in order to keep themselves feeling productive, proper workspaces are necessary.

“The pandemic has further evolved that transformation as working from home has become the norm for more residents,” said Beth Tuttle, vice president of marketing at LMC. “Large coworking spaces have now been partitioned into smaller spaces to allow for more physical distance between residents.”

Another amenity that is highly sought after is green space such as playgrounds, pet parks or access to nearby walking or biking trails. Playgrounds and green spaces were amenities the industry as a whole had dramatically leaned away from, Roessler noted, but that is expected to change as restrictions are eased and new work-from-home routines are established.

“These spaces offer an additional place for kids to expend energy while their parents work remotely,” he said.

Having access to green space on a property’s premises will be an important alternative for people who want to enjoy the outdoors but want to avoid more public recreation spaces. Outdoor lounge and grilling areas, for example, have always been attractive to residents but maybe were not used as often.

“Before the pandemic, residents could have stopped at a local bar or restaurant for happy hour with friends,” said Tuttle. “Today, they are holding virtual happy hours in outdoor lounges instead. These spaces provide a sense of normalcy while also offering a change of pace someone may need to help unwind from the new at-home workday.”

According to the National Multifamily Housing Council and Kingsley Associates 2020 Apartment Resident Preferences Report, more than one-third of residents surveyed were pet owners. Dog owners specifically even said they expected to pay between $28 to $34 more per feature per month for amenities catering to their animals, including pet-washing stations and on-site services, like dog walking or dog sitting.

Although fitness centers were one of the first amenities to be halted at most properties, they are actually still a top want from renters. The pandemic has placed a higher emphasis on health and wellness, prompting residents to take advantage of the fitness options provided to them once they are reopened.

TECH ON TOP

Technology is playing a big role in how amenities spaces are being repurposed and used by residents. Innovations that are becoming more commonplace include: facial recognition software, room sensors and smart home access controls, like touchless elevators and Bluetooth-enabled doors. When it comes to marketing to potential residents, self-guided and virtual tours are the most convenient option to increase lease-ups. For resident retention and safety, air filtration and electrostatic spraying features are easy upgrades that can be added to a community for higher sanitation needs.

“Having the proper mechanical, filtration and HVAC strategies matter,” said Jeffrey Schoeneck, executive director of Cuningham’s Live. “It’s going back to basics in terms of thinking of design and preventing some of the higher risks with a low-cost solution. Regenerative design is improving the situation in front of us … incorporating biophilia, stronger access to daylight, better LED and blue lights; all these factors boost health and a better lifestyle.”

With these transformations, buildings will become more behaviorally healthy for residents, while still allowing for places where people can connect passively and actively.

MOVING FORWARD

Although it is impossible to know when the next challenge might arise, it’s important to have a plan in place to keep owners and operators flexible. “Having a generic business continuity plan for any kind of event that might limit access to office spaces or exposure to customers, forces us to think through how we can continually adjust our strategies and look towards more digital solutions,” said Jenny Schoellhorn, director of learning and development at Birchstone Residential.

While the past year has been difficult, it has also been a great opportunity for multifamily operators to demonstrate how they can listen to residents and health experts and respond accordingly.

“Yes, this will pass, but something else will always come in its place,” said Schoeneck. “We need to capture those moments and translate them into design. Look at healthy buildings. Don’t lose sight of needs that are fundamentally healthy and focus on the end user and what will be the experience for them physically and mentally.”

Read the March 2021 issue of MHN.

Ashcroft Capital Expands Jacksonville Footprint

The company purchased Elliot Baymeadows in Jacksonville’s Royal Lakes neighborhood.

Ashcroft Capital has acquired Elliot Baymeadows in Jacksonville, Fla., marking the second acquisition through its Value Add Fund.

The company acquired the 352-unit community from an undisclosed seller and will put its in-house property management company, Birchstone Residential, in charge of managing the community.

Formerly known as Green Tree Place, Elliot Baymeadows offers one- and two-bedroom units that range in size from 550 to 1,100 square feet. The community’s amenities include a fitness center, courtyard, playground, pond, two tennis courts, swimming pools, bike storage, package delivery service, and picnic and grilling areas. The community is 96 percent occupied, according to Ashcroft Capital.

As the community was built in 1986, Ashcroft Capital will be conducting a series of interior and exterior renovations to Elliot Baymeadows. The units will be upgraded with quartz countertops, stainless steel appliances, new light and plumbing fixtures, among other additions.

Ashcroft Capital will also refurbish the community’s clubhouse and fitness facilities, repaint the property’s exterior, convert the tennis courts into sports courts and install a package locker system.

JACKSONVILLE’S STRONG FUNDAMENTALS

For Ashcroft Capital, Elliot Baymeadows was the second acquisition for its $150 million Value Add Fund, which focuses on growth markets in the southeastern U.S. The company’s first acquisition through the fund was its entry into the metro Atlanta market last month with the acquisition of the 412-unit Halston Riverside. Prior to the creation of its Value Add Fund, Ashcroft Capital also acquired Southside Villas, a community that offers one-, two- and three-bedroom units near Jacksonville’s downtown.

“We’re big believers in the Jacksonville metro for several reasons and absolutely intend to acquire more communities in this market,” Frank Roessler, founder & CEO of Ashcroft Capital, told Multi-Housing News. ”We always strive to invest in cities with heavy population growth from in-migration and that definitely describes Jacksonville.”

Roessler also told MHN that Jacksonville had a strong and diverse economy, including a strong financial and business sector, a rapidly growing healthcare industry and one of the largest trade ports in the country.

With the latest acquisition, Ashcroft Capital’s portfolio now totals more than 10,000 units in Jacksonville, Tampa and Orlando in Florida and the Dallas-Fort Worth area in Texas. The company is also looking to expand its Atlanta area portfolio as well as enter the Phoenix, Charlotte and Raleigh-Durham, N.C., markets.

Ashcroft Capital Expands Into the Metro Atlanta Market

The investment firm has acquired a 412-unit garden-style apartment community.

Ashcroft Capital has entered the Atlanta market with the acquisition of the 412-unit Halston Riverside, formerly the Retreat at Riverside, in Lawrenceville, Georgia.

The garden-style community is the first property purchased through Ashcroft Capital’s new $150 million value-add fund, which aims to acquire five to seven assets in targeted markets. It is expanding its geographic footprint by pursuing acquisition opportunities in Atlanta; Charlotte and Raleigh-Durham, North Carolina; and Phoenix. Since its inception, the fully integrated multifamily investment firm has acquired more than 10,000 units in Dallas-Fort Worth as well as Jacksonville, Orlando, and Tampa, Florida.

Frank Roessler, founder and CEO, said the firm plans to rapidly establish a large footprint of 5,000 units or more in Atlanta in order “to achieve economies of scale, market leverage, and recruitment strength.”

Birchstone Residential, Ashcroft Capital’s in-house property management company, has assumed management of Halston Riverside, which features one- and two-bedroom apartments. The property is located about 30 miles northeast of downtown Atlanta and offers residents close proximity to schools, restaurants, entertainment, and outdoor activities. Community amenities include package lockers, controlled gate entry, four resort-style pools, a playground, grills with picnic areas, a state-of-the-art fitness center, and a new cyber lounge.

“Halston Riverside represents the type of excellent value-add opportunity that our fund is targeting,” said Roessler. “It has a history of institutional ownership, and the property has been very well maintained. At the same time, we have identified ways to add significant value through rebranding and renovations. In addition, Lawrenceville continues to show a strong resilience to the economic effects brought upon by the pandemic.”

In-unit renovations will include new quartz countertops, undermount sinks, stainless steel appliances, tile backsplashes, and vinyl plank flooring. Amenity improvements to the clubhouse, dog park, and tennis courts also are planned.

“The renovations will help an already outstanding community stand out even more against the competition,” said David Deitz, president of Birchstone. “We also believe that our tech-forward supportive culture and dedication to best-in-class customer services will play a critical role in driving performance. At Halston Riverside and throughout the Ashcroft portfolio, this will result in communities that provide exceptional experiences to our prospects and residents and, in turn, maximize revenue and net operating income.”

Ashcroft Capital Snags Atlanta-Area Apartments

The garden-style community in Lawrenceville will undergo unit and amenity renovations.

Ashcroft Capital has acquired Halston Riverside, a garden-style apartment community in the Atlanta suburb of Lawrenceville, Ga.

Formerly Retreat at Riverside, the property at 1000 Duluth Hwy. will be managed by Birchstone Residential, the in-house property management company of Ashcroft Capital.

The community features 412 one- and two-bedroom apartments, with some offering 9-foot ceilings, garden tubs and ceiling fans, and select residences providing vaulted ceilings and built-in bookshelves with computer desks for those who work at home. Four swimming pools with waterfalls top the list of common-area amenities.

Last month, Ashcroft Capital’s CEO commented on todays’ must-have amenities.

SMALL CHALLENGE

“One small challenge stemmed from the fact that since it was our first acquisition in this market, we initially had limited boots on the ground, but we were able to capitalize on the outstanding expertise of several local consultants with whom we have longstanding relationships,” Scott Lebenhart, Ashcroft Capital director of acquisitions, told Multi-Housing News.

“Over the course of the transaction, we were able to build out a fully localized team. But that initial reliance on those local consultants was imperative, and we’re extremely grateful for it,” he added. 

Ashcroft Capital employs a strategy of acquiring value-add properties in high-growth markets, and intends on embarking on value-add renovations at Halston Riverside. In-unit upgrades will include installation of quartz countertops, undermount sinks, stainless steel appliances, tile backsplashes, vinyl plank flooring and new cabinet fronts. Clubhouse, dog park and tennis court improvements will also be undertaken.

Halston Riverside’s location near I-85 and Highway 316 helps make both Atlanta and Athens, home of the University of Georgia, very accessible.

Two Common Risks in Real Estate Acquisition and Development

Ashcroft Capital

An expert in property acquisitions, Frank Roessler is the founder of Ashcroft Capital, a California-based real estate investment firm dedicated to acquiring and operating properties with significant value-added components in major metropolitan areas. As the leader of the firm, Frank Roessler applies risk management practices in the acquisition, development, and financing of properties.

Understanding the risks associated with real estate investments is a critical step in any real estate acquisition (e.g. retail, residential, industrial, mixed-use, and commercial properties). The two most common risks involved in a real estate acquisition are market risks and financial risks.

Market risks in real estate are associated with changing economic factors such as inflation, interest rates, tax management, and government policies. Real estate investment firms can hedge market risks by diversifying their investment portfolios. In case of a local economy setback, investments in more than one market help minimize losses.

Financial risks pertain to the risk of losing money on the property that may be caused by overpayment for the asset in the first place or underestimating the capital needs for repositioning the property. Inadequate insurance and over-leveraging a property may also lead to foreclosure or taking a loss on the property, both of which impose a financial risk to one’s investment.

Please visit https://www.ashcroftcapital.com/about/frank-roessler/ to learn more about Ashcroft Capital’s real estate acquisition and repositioning strategies.