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Founders Grove Capital

Western Station Update History

September 2020

Occupancy (94.1%) remains stable and in the mid-90s, and we continue to achieve a near perfect collections rate (99.1%).

Distributions

We plan on continuing to do quarterly distributions for this property to remain conservative.

We are sending out your full quarterly distribution by the end of the month. It will cover July, August, and September. For example, if you invested $100,000, the quarterly distribution is $2,000.

The next distribution is scheduled for the end of January. It will cover October, November, and December.

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

Current occupancy is 94.1% and preleased occupancy is 93.56%.

Collections remains nearly perfect at 99.1% on occupied units. The few residents with COVID-related issues who do have minor balances have communicated with our staff.

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:

  • Pumpkin Carving
  • Deserts to Go
  • Patio Decorating Contest

August 2020

Occupancy (94.6%) has stabilized in the mid-90s and collections (99%) remains nearly perfect in August at Western Station.

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 let you know in next month’s recap email if we will transition back to monthly distributions.

Operations

Occupancy is still strong. Current occupancy is up to 94.6% (compared to 93.6% last month) and preleased occupancy is 93.1%.

We achieved a near perfect collections rate of 99% on occupied units. 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 a strong collections rate throughout the pandemic, 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

As a reminder, due to the stabilized occupancy and low delinquency, we decided to restart interior renovations last month.

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. Click here for pictures from last month’s events.

 In September, these events will include:

  • Breakfast at the Gate
  • Fall Picture Contest
  • Resident Cookie Recipe Contest

July 2020

Things are continuing to improve at Western Station amidst the coronavirus pandemic. Occupancy and collections are strong while interior renovations have resumed.

Distributions

Last month, you received a quarterly distribution equal to 1% of your initial investment. Since this was less than a full quarter’s worth of preferred return, the unpaid preferred return will accrue and be paid out at a capital event or when the property’s cash flow allows for it. We will let you know by October, which is the next scheduled distribution, if we will transition back to monthly distributions.

Operations

Current occupancy is 93.6% and preleased occupancy is 94.1%.

Collections have been strong throughout the coronavirus pandemic. We only have two residents with large balances and one of them has slowly started to pay it down.

Renovations

Because of the strong occupancy and collections, we restarted interior renovations. This will increase revenue and the value of the property, allowing us to focus on the long-term health of the investment.

We have also made improvements to our landscaping , installed new grills , and added a sanitary station inside the clubhouse.

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:

  • Weekly Facebook Pet Contest
  • Popsicle In The Park
  • Taco Truck

June 2020

The operations at Western Station were impacted by the coronavirus pandemic. Occupancy is strong but collections continue to be a challenge due to the eviction moratorium.

We are continuing to focus on preserving your capital investment and have been implementing solutions to increase our collections.

Here are updates on what we’ve done at Western Station over the previous 30 days to preserve your capital investment, increase occupancy, and increase collections.

Distributions

As a reminder, we decided to temporarily transition from monthly distributions to quarterly distributions at Western Station. We also decided to temporarily suspend collecting our asset management fees.

We will be sending out a distribution by the end of the month. We have decided to remain conservative and it will equal 1% of your investment. For example, if you invested $100,000, you will receive ~1,000.

This is less than a full quarter’s worth of preferred return, which is 2% (8% preferred return divided by 4 quarters equals 2%). Therefore, the difference between what is owed and what is distributed will accrue and be paid out at a capital event. The reasoning behind this lowered distribution is outlined in the “Operations” section below.

The next distribution is scheduled for the end of October. It will cover July, August, and September. We will let you know by then if we will continue quarterly distributions or transition back to monthly distributions.

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 95.5% (compared to 93.6% last month) and preleased occupancy is 95.1%.

Demand in the submarket sharply declined at the onset of the coronavirus pandemic. However, we are starting to see traffic pickup substantially, which is reflected by the increasing occupancy rates.

The reason we aren’t sending a full distribution so that we can invest in unit renovations to increase revenue and therefore increase the value of the property. This approach allows us to focus more on the long-term health of the investment.

Renovations

We previously decided to temporarily pause interior renovations. Due to our strong occupancy, they have since been restarted.

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:

Pop In For Popcorn
Don’t Blow Your Summer (Pick Up Bubbles)
Breakfast On The Go

 

May 2020

 

The operations at Western Station were impacted by the coronavirus pandemic. As a result, collections and occupancy rates suffered. However, from an occupancy standpoint, things are beginning to trend in a positive direction.

We are continuing to focus on preserving your capital investment and have been implementing solutions to increase our occupancy rate and collections.

Here are updates on what we’ve done at Western Station over the previous 30 days to preserve your capital investment, increase occupancy, and increase collections.

 

Distributions

As a reminder, we decided to temporarily transition from monthly distributions to quarterly distributions at Western Station. We also decided to temporarily suspend collecting our asset management fees.

The next distribution is still scheduled for the end of July. It will cover April, May, and June. In July, we should have a better understanding of how the pandemic has affected Western Station and will decide if we can transition back to monthly distributions or if that needs to be extended.

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 93.56% and preleased occupancy is 94.06%.

Demand in the submarket sharply declined at the onset of the coronavirus pandemic. However, we are starting to see traffic pickup substantially, which is reflected by the increasing occupancy rates.

With the outbreak of coronavirus and the resulting eviction moratorium, some residents cannot pay their rent in full and the CARES Act prohibits us from non-payment-based evictions until August. Although current collections are slightly below historical averages and we might see a short-term uptick in bad debt, we expect the property to recover very quickly due to the strength of the demographics onsite

 

Renovations

We have also temporarily paused interior renovations. However, we are looking into resuming shortly as our occupancy increases.

Due to the above-mentioned reasons, leases on previously upgraded units are below our projections by an average of $41. Over the previous four months, 23 upgraded units were leased at an average of $60 below projections. These reductions should be temporary and will reset once we’ve increased the occupancy rate and collections. Please note that we are on LRO (revenue management) and that rent swings in order to bolster occupancy are common.

 

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:

  • Pet Snack Day
  • Father’s Day Card Craft Event
  • Popsicle’s-To-Go

 


 

April 2020

 

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

Here are some updates on Western Station over the previous 30 days:

 

Distributions

We have temporarily transitioned from monthly distributions to quarterly distributions. This proactive measure will give us time to assess how the pandemic has affected Western Station, allow us to remain conservative and help us better preserve your capital investment.

Therefore, the next distribution is scheduled for the end of July. It will cover April, May, and June. In July, we should have a better understanding of how the pandemic has affected Western Station and will decide if we can transition back to monthly distributions.

 

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

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.

 

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:

  • Mother\s Day Coloring Pages Delivered
  • Cookie Delivery to Essential Worker
  • Side Walk Chalk Contest

 


 

March 2020

 

Distributions

One major area of focus has been rent collections. We have made arrangements with some of the residents who are facing a coronavirus-related hardship at Western Station to pay their rent by the 25th. Therefore, I will send another email on the 27th with an update on the status of collections and if we feel we need to defer distributions based on how the resident base is impacted. However, our breakeven occupancy is 71.6%. range. This means we will be able to cover all expenses, and conserve your investment, at an occupancy rate that is 71.6% 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 sample virtual tour at Western Station.

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 13 new units in March.

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 Texas guidance on eviction proceedings as well as complying with new standards from our lenders.

Everyone at Western Station 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:

  • Apartment Scavenger Hunt
  • Virtual Happy Hour

 

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

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

    • Management Meet & Greet – March 12th
    • Taco Tuesday – March 17th
    • Safety Awareness – March 27th

In related news, Dallas-Fort Worth ranked 2nd out of all major US cities in the forecasted net migration in 2020 by Marcus and Millichap. Dallas-Fort Worth is expected to have a net migration of 69,600 people in 2020, which is 0.9% of its population. 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 Western Station 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.

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

    • Breakfast On The Go – February 10th
    • Valentine w/ Management Dessert Bar – February 14th
    • Carter Blood Donation – February 28th

In related news, according to the most recent Bureau of Labor Statistics economic data, Texas added more jobs in 2019 than any other state. Additionally, the Dallas-Fort Worth-Arlington MSA was the #2 ranked market in the number of new jobs added in 2019. In fact, the number of new jobs added in 2019 outpaced the total number of jobs added in 40 out of 50 states. Click here to learn more.

 


 

December 2019

 

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

 

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

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

    • Ice Cream Bar – January 10th
    • Resident Brunch – January 18th
    • H&R Block Tax Prep – January 28th 

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

 

We are exceeding our projected rents by $17 for all newly-renovated unit leases.

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

    • Hot Chocolate and Cookies – December 13th
    • Patio Decorating Contest – December 20th

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

 

We are exceeding our projected rents by $25 for all newly-renovated unit leases.

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

    • Brunch – November 8th
    • Happy Hour – November 18th

In related news, Sally Beauty Supply is creating more than 300 new jobs at a new distribution center and headquarters in Fort Worth. In addition to hiring for 40 new positions at its headquarters, they are building a 500,000-square-foot automated distribution center that’s expected to open in March and create 270 new jobs. Click here to learn more.

 


 

September 2019

 

Please click here to download the quarterly financial statements (current rent roll and profit and loss statement).

We are continuing to exceed our projected rents by $44 for all newly-renovated unit leases.

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

    • Community Blood Drive – 10/14
    • Pumpkin Carving – 10/23

 


 

August 2019

 

We are now exceeding our projected rents by over $44 for all newly-renovated unit leases.

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

    • Taco Tuesday – 9/10
    • Desserts-on-the-Go – 9/20
    • Renewal Pizza Party – 9/26

 


 

July 2019

 

We are exceeding our projected rents by over $33 for all newly-renovated unit leases.

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

    • Taco Tuesday – 8/13
    • Renewal Party – 8/22
    • Happy Hour – 8/30

The four biggest Texas metro areas, including DFW, surpassed the total number of tech workforce in the traditional tech strongholds of Silicon Valley and New York City. Combined, the four metros have 367,460 tech workers compared to 353,760 in New York and 264,374 in Silicon Valley. According to CoStar analysts, the lower cost of living in Texas is responsible for this surge in the tech labor pool, which is great news for the DFW and Texas market as a whole. Click here to learn more.

 


 

June 2019

As a reminder, due to the fact that Western Station outperformed our initial projections during our second full year of ownership, you received a higher distribution last month. In addition to your regular 8% annualize distribution, you received an additional 1%. 

Congrats again on a successful second year. We will reevaluate the performance again in 12 months and distribute extra profits at the time, if applicable. Here are some property-specific updates for the month of June:

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

    • Renewal Party: 7/9
    • Happy Hour: 7/17
    • Desserts-on-the-Go: 7/26

In related news, the State of Texas topped WalletHub’s annual report on the best and worst states to start a business in 2019. The states were compared across 26 key indicators and were ranked based on business environment, access to resources, and business costs. This reinforces our thoughts on the continued strength of our submarkets within the state of Texas. Click here to learn more.

 


May 2019

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

    • Renewal Party: 6/7
    • Yappy Hour: 6/14
    • Pool Party: 6/22

In related news, Fort Worth passed both San Francisco and Columbus, OH, in population. Fort Worth grew by 19,500 people, or 2.2%, for 2017 to 2018, overtaking Columbus and San Francisco as the 13th most populous US city. This reinforces our thoughts on the continued strength of the Fort Worth market. Click here to learn more.

Additionally, the state of Texas added more jobs year-over-year than any other state (283,000 jobs, which is a 2.7% job growth). Also, Texas added 26,900 new jobs in April, marking the 108th consecutive month of job growth. Click here to learn more.

 


 

April 2019

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

    • Desserts-on-the-Go: 5/9
    • Happy Hour: 5/17
    • Renewal Party: 5/22

 


 

March 2019


We are exceeding our projected rents by $10 for all newly-renovated unit leases.

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

    • Wellness Screening: 4/11
    • Renewal Pizza Party: 4/18
    • Spring Field Day: 4/27

 


 

February 2019

  • The current occupancy is 96.5% and preleased occupancy is 93.0%
  • Since acquiring Western Station, we have renovated a total of 106 of 202 units (2 new units in February)
  • We are continuing to achieve our projected rents for all new renovated unit leases
  • We are hosting the following resident appreciation and retention events in March:
    • Brunch: 3/16
    • Renewal Party: 3/22

In related news, AllianceTexas development, the 26,000-acre commercial, industrial, and residential community in Fort Worth, has recently hit the halfway mark. To date, it has generated more than $76 billion in economic growth, including more than $7 billion last year. Currently, more than 61,000 Texans work for nearly 500 companies within the AllianceTexas development, which will only increase in the coming years. Click here to learn more.

You should have already received your 2018 Schedule K-1 (Form 1065) in the mail and via email. If you have not, please let us know by emailing info@ashcroftcapital.com

 


 

January 2019

  • Our occupancy rate has increased for the second straight month to 97.0% (up from 96.0% last month) and preleased occupancy is 98.0%
  • We have renovated a total of 104 of 202 units since acquiring Western Station
  • We are continuing to achieve our projected rents on all new renovated unit leases
  • On 2/14, we are hosting a Valentine’s Day Breakfast-On-The-Go event for our residents

Stanley Black & Decker is putting its new 1.2-million-square-foot- regional distribution hub north of Fort Worth, TX, which is expected to create 300 new jobs. The facility will be a 12 minute drive from Western Station and reinforces our thoughts on the strength of the Fort Worth market.  Click here to learn more.

 


 

December 2018

  • Our occupancy rate has increased to 96.0% (up from 95.0% last month)
  • Preleased occupancy is 96.5%
  • Since acquiring Western Station, we have renovated a total of 104 of 202 units (5 new units in December)
  • We are continuing to achieve our projected rents on all new renovated unit leases

A record number of companies left California for states with a better business climate, and a new report shows that Texas remains the number one destination. According to the study, 1,800 companies left California in 2016 (the most recent year data is available for), which is a 9-year high, and 299 of those companies moved to Texas. Click here to read more.

Additionally, the Arlington-based Texas Health recently announced plans for a $74.2 million expansion called The Alliance Project. The project, which is expected to be completed in late 2021, will add three stories (65,000-square-foot addition) to a hospital that is an 11-minute drive from Western Station. Click here to learn more.

 


 

November 2018

  • Current occupancy is 95.0% and preleased occupancy is 96.5%
  • We have renovated a total of 99 of 202 units since acquiring Western Station (5 units in November)
  • We are continuing to achieve our projected rents on all new renovated unit leases

Amazon just announced that construction has already begun on a hub at Fort Worth’s Alliance Airport, which is a 13-minute drive from Western Station, to service Amazon Air – the company’s dedicated air cargo network. The hub is expected to generate hundreds of new jobs and will be operational in 2019. Click here to learn more.

 


 

October 2018

  • Current occupancy is 95.0% and preleased occupancy is 96.0%
  • Since acquiring Western Station, we have renovated a total of 94 of 202 units
  • We are continuing to achieve our projected rents on all new renovated units
  • We hosted a Yappy Hour this month, which is a “networking event” for all the pets at Western Station