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Founders Grove Capital

Southside Villas Update History

formerly Park Village

September 2020

Both occupancy (95.3%) and collections (99.0%) remain strong at Southside Villas.

Distributions

This month marks our 1st full year of ownership of Southside Villas. Because of the strong performance over the past 12 months, we will receive a higher distribution this month. In addition to your regular prorated 6.5% monthly return, you will receive another 0.25%. This brings the total year 1 return to 6.75%, which is greater than our original year 2 projection of 6.5%.

If you invested $100,000, for example, you will receive $791.67 ($541.67 + $250) by the end of the month. Starting again next month, you will receive an 8% prorated monthly distribution. In another 12 months, we will re-evaluate Southside Villas’ performance and distribution a higher distribution if applicable.

Congratulations on a successful first year.

Financials

The Q3 financials (rent roll and trailing 12-month profit and loss statement) are now available on the Investor Portal. Login to your account to view by clicking here.

Operations

Operations remain strong at Southside Villas. Current occupancy is 95.3% (up from 91% in the spring) and preleased occupancy is 95%. Collections on occupied units remains nearly perfect at 99.0%.

We are in the process of revamping the landscaping (click here for progress pictures).

We renovated six new units since last month’s recap email. Overall, we are exceeding our projected rents by an average of $19 on renovated unit leases. Over the last four months, we are exceeding our projected rents by an average of $29 on 26 upgrade units.

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting to follow the social distancing guidelines. In October, these events will include:

  • Outdoor Pumpkin Patch
  • Patio/Balcony Halloween Decorating Contest
  • Office Trick-or-Treat Bag Handout

August 2020

Operations at Southside Villas remain strong. Occupancy (96.0%) has continued to increase, and collections (99.5%) were nearly perfect in August.

Timing for Monthly Recap Email Update

Moving forward, the monthly updates will be sent out by the last Friday of the month. This will allow us to more closely align with internal operations while providing you with the information you need to stay updated on the property.

Expect to receive the September Recap email by Friday October 30th.

Distributions

We will continue to send monthly distributions. You will receive your next distribution by the end of the month.

Operations

Occupancy has increased for the third straight month to 96.0% (up from 94% last month) and preleased occupancy is 94.0%.

Collections remains strong as well. We achieved a near perfect collections rate of 99.5% on occupied units in August. However, earlier this month, the CDC issued an eviction moratorium effective from September 4th to December 31stClick here for article with more details on the moratorium.

Due to the near perfect collections rate, we are uncertain if the renewed moratorium will negatively affect operations. Nonetheless, after the CDC’s announcement, we immediately began working with our property management company to establish strategies to work within the guidelines of the moratorium while mitigating operational impacts.

Renovations

Our exterior renovations give the Southside Villas a luxurious feel and competes well with other high-end assets in the area. The clubhouse and fitness center renovations are nearing completion. Click here for pictures of the upgraded outdoor sitting area.

We have renovated a total of 73 units since acquisition. We are exceeding our rent projections by an average of $28 on the 28 upgraded unit leases over the past four months.

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting to follow the social distancing guidelines. In September, these events will include:

  • National Fortune Cookie Day
  • National Pay-Doh Day
  • Food Truck Event

July2020

Southside Villas continues to perform well during the coronavirus pandemic. Occupancy has continued to increase and is trending in-line with our projections.

Distributions

We will continue to send monthly distributions of Southside Villas. You will receive your next distribution by the end of the month.

Operations

Our occupancy rate continues to grow. Current occupancy is 94.0%, up from 93.0% last month and 91.0% two months ago. Preleased occupancy is 96.0% through the end of the month. This trend is in-line with our projections, which we attribute to the recovering of the Jacksonville market and our strong management team.

Collections remain strong as well.

Renovations

The clubhouse and fitness center is scheduled to be completed by the end of September. The exterior painting and roofing are completed.

Three more units were renovated in July, bringing the total to 69 since acquisition. They have been received well, which is reflected by our rental premiums demanded. We are exceeding our rent projections by $5 on all upgraded units and by $22 on 30 units over the past four months.

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting to follow the social distancing guidelines. In August, these events will include:

  • National Tell a Joke Day
  • National Banana Split Day

June 2020

Things are continuing to go well at Southside Villas amidst the economic turmoil created by the coronavirus pandemic. Collections are strong, unit renovations are underway, and our occupancy rate has begun to increase.

Here are some other updates on Southside Villas over the previous 30 days:

Distributions

Due to the strong collections and occupancy, we will be able to continue to send out monthly distributions for Southside Villas. You will receive your distribution by the end of the month.

Financials

As a reminder, we now upload the quarterly financials to the investor portal. If you already set up your account, you can immediately download the Q2 2020 financials (rent roll and 12-month profit and loss state) by logging into the portal by clicking here.

Operations

Current occupancy has increased to 93.0% (compared to 91.0% last month) and preleased occupancy is 94.3%. These rates remain slightly below our initial projections; however, we expect to trend more in-line with our projections as Jacksonville rebounds from the coronavirus and leasing traffic picks back up.

We are confident in this expectation due to the property being led by a strong manager and being positioned well within the market. Click here for a review we received from a resident for an idea of how great our management team is.

Renovations

The new monument sign was installed in May and you can click here for a picture. The clubhouse and fitness center upgrades are scheduled to be completed by the end of September.

Since acquiring Southside Villas, we’ve renovated a total of 66 units, including 9 new units over the previous 30 days. We experienced delays when ordering unit renovation materials due to the onset of coronavirus but we are now upgrading units at a faster pace and focused on pushing occupancy.

We also ordered renovation kits for an additional 40 units since demand has been strong for the renovated product, which is reflected by our rent premiums. Overall, rents on these upgraded units are exceeding our projections by an average of $8. Over the previous four months, 26 upgraded units were leased at an average of $25 greater than our projections.

Resident Activities

We are continuing to be creative with the types of resident appreciation events we are hosting to follow the social distancing guidelines. In July, these events will include:

Video Game Day
National Cheesecake Day
World Emoji Day

 

May 2020

 

Things are going well at Southside Villas amidst the economic turmoil created by the coronavirus pandemic. Collections are strong, unit renovations are underway, and our occupancy rate has remained stable over the last few months.

Here are some other updates on Southside Villas over the previous 30 days:

 

Distributions

Due to the strong collections and occupancy, we will be able to continue to send out monthly distributions for Southside Villas. You will receive your distribution by the end of the month.

Friendly Reminder:  We still have some investors who have not logged into the investor portal, and some who still need to add or update their information. If you have not done so already, we would like to remind you to please log in to the investor portal and complete your profile information, as well as review and/or update your payment information. It is very important to complete the appropriate steps in order to continue to receive your distributions to your preferred location. Please click here for the instructions. If you have not received your invitation or it recently expired, and you need it re-sent, please contact InvestorRelations@ashcroftcapital.com (DO NOT create a new profile, as it will not connect you to your investments already in the system). If you have already logged in and would like to be taken directly to the portal click here.  

 

Operations

Current occupancy is 91.0%, which has been consistent over the past three months, and preleased occupancy is 91.8%. These rates are slightly below our initial projections, however, we expect to trend more in-line with our projections as Jacksonville rebounds from the coronavirus and leasing traffic picks back up. We are confident in this expectation due to the property being led by a strong manager and being positioned well within the market.

 

Renovations

Our unit renovations have been received well and our property manager tells us that the exterior amenity upgrades are also generating a lot of buzz in the submarket.

The new signage is installed and all other outdoor amenity projects are completed. The clubhouse and fitness center upgrades are scheduled to be completed by the beginning of August.

We’ve renovated a total of 57 units since acquiring Southside Villas. We experienced delays when ordering unit renovation materials due to the onset of coronavirus but we are now upgrading units at a faster pace and focused on pushing occupancy.

Overall, rents on these upgraded units are exceeding our projections by an average of $8. Over the previous four months, 21 upgraded units were leased at an average of $23 greater than our projections.

 

Resident Activities

We are continuing to be creative with the types of resident appreciation events we are hosting to follow the social distancing guidelines. In June, these events will include:

  • World Ocean Day Contest
  • Smile Power Day
  • Food Truck Delivery

 


April 2020

 

We have continued to focus on the preservation of your capital investment during the coronavirus pandemic

Here are some updates on Southside Villas  over the previous 30 days:

 

Distributions

We are happy to announce that because of the strong rental collections during the month of April and month-to-date in May, we will be able to continue to send out monthly distributions for Southside Villas. You will receive your distribution by the end of the month.

 

Friendly Reminder:  We would like to remind all investors who have not yet logged in to the Investor Portal and completed their profile information, as well as reviewed and/or updated their payment information to do so. It is important to complete the appropriate steps in order to continue to receive your monthly distributions to your preferred location. Please click here for the instructions. If you have not received your invitation or it recently expired, and you need it re-sent, please contact InvestorRelations@ashcroftcapital.com. If you have already logged in and would like to be taken directly to the portal Click here.  

 

Operations

Month-to-date rent collections in May have been strong and we are expecting them to trend in-line with April collections.

Due to social distancing and stay-at-home orders, we are continuing to offer virtual tours and YouTube video unit walk throughs for prospective residents.

We are also continuing to move forward with exterior construction projects. We completed the signage and the pool upgrades  and the fitness center upgrade is in progress.

 

Resident Activities

We are also continuing to be creative with the types of events we are hosting for the residents to promote engagement of residents, as well as social distancing. In May, these events include:

  • Limerick Day Contest
  • Dance Like a Chicken Day Contest
  • Hamburger Day Recipe Contest

Additionally, we plan on re-opening the pool to residents on May 18th, with reduced capacity.


March 2020

 

Distributions

One major area of focus has been rent collections. We are happy to report that based on the month-to-date collections at Southside Villas, we will be able to send your full distribution by the end of the month. We will continue to monitor collections and the business plan in future months but are initially pleased with this outcome considering countless industries are being disrupted by COVID-19.

Keep in mind that our breakeven occupancy is 81.9%. This means we will be able to cover all expenses, and conserve your investment, at an occupancy rate that is 81.9% or higher.

 

Operations

While our leasing traffic has slowed down, we are offering virtual tours and creating YouTube videos of unit walkthroughs. Click here for a video of a virtual tour.

We continue to move forward with numerous construction projects, making sure that job safety is the number one priority. In fact, it is a great time to move forward with these projects with minimal disruption to our residents. We renovated 11 new units in March. All major capex projects, including paint and carpentry, amenities, and signage, are schedule for completion by 6/1.

We are instituting a “Hero of the Month” and “Hero of the Week” program that honors our portfolio’s essential workers whose dedication and hard work are nothing short of inspiring.

We applied and were approved for the Paycheck Protection Program, which should allow us to significantly reduce our payroll expense.

We are actively monitoring and complying with Florida guidance on eviction proceedings as well as complying with new standards from our lenders.

Everyone at Southside Villas is adapting quickly to this new reality.

 

Residents

Our operational goals are always to meet and exceed residents’ standards and their safety and happiness is our mission. During these challenging times, we’ve constantly provided local and national resources for our most impacted residents. These include local housing organizations, churches, and food banks.

Since our gym and common areas are closed, we are hosting resident events that promote social distancing. In April, these include:

  • Draw a Picture of a Bird Day
  • Scrabble Day
  • National Poem Month

 

Financials

Since we have now successfully rolled out the Investor Portal, the quarterly financials will be available for download off of the Investor Portal. We will upload Q1 2020 financials (a current rent roll and trailing 12-month profit and loss statement) by the end of April.

 

If you have already logged in and would like to be taken directly to the portal Click here.  If you have not received your invitation or it recently expired, and you need it re-sent, please contact chat@ashcroftcapital.com  In order to expedite any future or previous distribution requests changes, you must log in to the portal and add your complete profile information in order to make any changes to your payment information. Without doing so, the system will not allow it. If you need help navigating through the portal you may contact IMS support at 855-866-0889. Please click here to view the investor portal FAQ document.

 

I am proud to be your investment partner and look forward to working through today’s challenges together. I hope that you and your family are well.


February 2020

 

As a reminder, we launched the new Ashcroft Capital Investor Portal. You should have received an invitation already. If you didn’t, please check your spam folder. If it isn’t in your spam folder, please let us know by emailing chat@ashcroftcapital.com. 

If you haven’t done so already, please login and confirm that your personal information is accurate. If not, please make sure that you update it by adding all your current information as well as updating payment information. If we need to make any changes to any of your deal information only, please let us know by emailing chat@ashcroftcapital.com. You can read and review the FAQ page by clicking here.

Starting on May 1st, you will be able to download a statement showing all the distributions that you’ve received to date.

Also, we will upload your 2019 K-1 tax document to the new investor portal by March 31st. You will be notified via email once it is available. We do not have a specific date other than to say that it will be available no later than March 31st. 

 

We are achieving our projected rents for all newly-renovated unit leases

Capital expenditure updates:

    • Paint/Carpentry, amenity upgrades, and new signage are scheduled to be completed by May 15th

The following resident appreciation and retention event is being hosted in March:

    • Popcorn Lover’s Day & Movie Night
    • St. Patrick’s Day Celebration
    • Waffle Day
    • National Crayon Day Coloring Contest

In related news, more Americans moved to Florida than any other state in 2019 with Jacksonville taking the number 2 spot for the state. This is great news and reinforces our thoughts on the continued demand for multifamily housing in the market. Click here to learn more.

 


January 2020

 

Things are going well at Southside Villas as we continue to implement our value-add business plan.

I am excited to announce that my partner, Ashcroft Capital, will be launching a new Investor Portal, which is designed to improve communication and engagement with you, our partner. When the portal is officially launched, I will send you an email with instructions on how to login, as well as an FAQ guide about how to use the portal.

Also, we will upload your 2019 K-1 tax document to the new investor portal by March 31st. You will be notified via email once it is available. We do not have a specific date other than to say that it will be available no later than March 31st. The IRS revised the 2019 K-1 to require additional information for all partners investing with a disregarded entity (i.e., a single-member LLC). If you are investing with us with a single-member LLC, please fill out this AdobeSign document by clicking here.

 

We are achieving our projected rents for all newly-renovated unit leases.

Capital expenditure updates:

    • Amazon Lockers are installed
    • Property painting and wood/stucco repairs will begin February 14th
    • Amenities capex projects are being planned

The following resident appreciation and retention event is being hosted in February:

    • Movie Night – February 13th

In related news, according to the most recent Bureau of Labor Statistics economic data, Florida ranked #2 in the number of new jobs added in 2019. Click here to learn more.

 


December 2019

 

You can download the quarterly financials (rent roll and profit and loss statement) by clicking here.

Capital expenditure updates:

    • Scopes of work are being finalized for all major capex projects
    • Pricing with contractors is being finalized 

The following resident appreciation and retention events are being/were hosted in January:

    • Dress Up Your Pet Contest
    • National Bagel Day Breakfast On The Go
    • 2020 Kick Off The New Year Event

Lastly, click here for a news article that reinforces our thoughts on the continued strength of multifamily housing. According to data compiled by Deutsche Bank, the median age of US homebuyers is now 47. For comparison, the median age of US homebuyers in 1981 was 31. Much of this rise can be attributed to the extreme reduction in young, first-time homebuyers in the housing market. This means more and more people will be renting rather than buying.

 


 

November 2019

 

Capital expenditure updates:

    • Scopes of work are being finalized for all major capex projects
    • Contractors will be chosen before the end of the year

The following resident appreciation and retention events are being/were hosted in December:

    • Breakfast On The Go – December 12th
    • Holiday Event With Santa – December 21st
    • Patio/Door Decorating Content – December 31st

In related news, a corporate relocation, site-selection expert explained why Fortune 500 companies are moving their headquarters from California, New York, New Jersey, and Connecticut to states like Florida and Texas. One of the main reasons is that the pro-business policies, low taxes, and fiscal restraint will enable Florida and Texas to “best weather the storm of an economic downturn.” Click here to read more.

 


October 2019

 

Capital expenditure updates:

    • We are currently receiving bids for the carpentry, stucco, exterior paint, trash compactor enclosure, gutter repair, and cleaning projects.
    • We are working on the scopes of work for all other capital expenditure projects

The following resident appreciation and retention events are being hosted in November:

    • Breakfast On The Go
    • Food Truck
    • Thankful For You Gathering

In related news, Florida Gov. DeSantis recently announced that Fidelity is building its new headquarters in Jacksonville. The new $145 million headquarters is set to be a 300,000 square-foot, 12-story building. This move is expected to bring 500 new jobs over the next 10 years. This reinforces our thoughts on the strength of the Jacksonville market. Click here to learn more.

 


September 2019

 

Welcome to your first monthly recap email for Southside Villas (formerly Park Avenue).

Please download and review the Investor Guide here, which answers questions you might have about distributions, tax timing, etc.

We will send the first distribution for Southside Villas at the end of November. It will cover the time we owned the property in September (12th to 30th) and all of October. Also, if you submitted your funds 30 days prior to the closing date (before August 12th), you will receive an annual interest rate of 0.4%, or ~0.033% per month. For a $100,000 investment, that would be ~$33.33. This interest will be included in your first monthly distribution as well.

After the first distribution, we will send the prorated 6.5% by the end of each month, starting in December. Then, after 12-months of ownership, we will evaluate the performance of Highlands of Preston and cash flow above the 7.2% will be distributed, if applicable.

Here are some property-specific updates from the month of September:

Capital expenditure updates:

    • We have identified the first batch of units to renovate and will begin within the next 30 days. 
    • Since this deal was parceled off from a larger property, we needed extra time to make a good impression with the residents, finalize our scope, and make sure we are getting the best pricing.
    • We are mobilizing on all exterior capex projects.

The following resident appreciation and retention events are being/were hosted in October:

    • Meet-And-Greet + Halloween Event – 10/10

 


August 2019

 

We are happy to announce that we have officially closed on Southside Villas (formerly Park Avenue). Our property management company has been notified about the closing and has already taken control of the asset.

Congratulations!

Here is some important information you’ll need to know moving forward.

 

  • Recap Emails: Expect to receive an email each month (by the 15th) that recaps the previous month’s operations. 
  • These will include our current occupancy rate and end-of-month occupancy trend, interior and exterior renovation updates, the rent premiums demanded on renovated units, resident marketing updates, and Jacksonville market updates.
  • You will receive the first recap email next month by the 15th.
  • Financials: We will provide you with Southside Villas’s financials (a trailing 12-month profit and loss statement and current rent roll) each quarter. These will be included in the recap email. 
  • You will receive the first financials in the December recap email, which you will receive by the 15th of January
  • Distributions:  You will be receiving a monthly distribution and can expect the first distribution to be received by the end of November.

 

    • Since we closed on September 12th, your first distribution will be for September 12th to October 31st.
  • After your first distribution, expect a 6.5% pro-rated return (6.5% of your investment / 12 months) until the end of the first year of ownership. 
    •  After owning the property for 12-months, we will evaluate our progress. At that point, if applicable, the cash flow above the regular monthly payments will be distributed.This process will repeat every 12-months there-after (i.e. after 24-months of ownership, 36-monthsof ownership, 48-months of ownership, etc.) until we sell
  • Since we are projecting a year 1 return below the 8%preferred return offered on this deal, the difference will accrue and will be distributed during the hold period or, by the latest,at sale.
  • Tax Distribution Timing: Your K1 will be provided on or before March 31st.

 

Additionally, Colliers International recently released their research and forecast report on the Jacksonville, FL multifamily market. According to the report, Jacksonville continues to be one of the highest performing and most sought-after multifamily markets in the US. Click here to download the full report.