by Stephen Ursery

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.