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Founders Grove Capital

LIV at Valley Ranch Update History

formerly The Oaks at Valley Ranch

September 2020

We achieved a perfect collections rate (100%) last month while occupancy (91.7%) remains stable and in the 90s.

Distributions

We will continue to send monthly distributions, which you will receive by the end of the month.

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

Occupancy remained in the 90s for the third straight month. Current occupancy is 91.7% and preleased occupancy is 92.3%.

To get into the mid-90s, our focus is on persuading our notice-to-vacates (NTVs) to stay at our community. We had a large amount of NTVs due to job losses, furloughs, and contract work expiring due to COVID-19. Strategies we are implementing to get them to stay are offering unit transfers and very small stay concessions.

The collections rate on the occupied units was 100% last month.

Renovations

Construction on the new dog park is completed. We’ve also finished installing the extra private yards. The new monument sign is still in permitting.

We are also continuing to offer renovated and classic units to prospective renters. On the renovated units, we are achieving our projected rents.

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:

Movie Night
Breakfast On The Go
Trunk and Treat

August 2020

The occupancy rate remained in the 90’s and we achieved a nearly perfect collections rate (99%) in the month of August at LIV at Valley Ranch.

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 remained in the 90’s for the second straight month. Current occupancy is 92.2% and we are trending even higher (93.4%) through the end of the month. We also nearly achieved perfect collections in August – rent was collected on 99% of the occupied units.

Earlier this month, the CDC issued an eviction moratorium effective from September 4th to December 31st. Click here for article with more details on the moratorium.

Due to our high collections rate, we are uncertain if this renewed moratorium will negatively affect our 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.

In the meantime, our focus remains on increasing the occupancy rate. Since we have had success in increasing the occupancy rate, we are pursuing the same marketing strategies outlined in last month’s recap email. Click here for a picture of the new leasing banner.

Renovations

Construction on the new dog park will commence later this month. We are also looking into adding more yards to increase rents.

We are continuing to offer a mix of renovated and classic units. On the renovated unit leases, we are achieving our projected rental premiums.

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 a picture of a resident who attended our Back-To-School event last month.

In September, these events will include:

  • Wine Down Wednesday
  • Fair Day
  • Breakfast On The Go

July 2020

Things are continuing to go well at LIV at Valley Ranch during the coronavirus pandemic. Occupancy remained strong and the rents on recently leased upgraded units are exceeding our original projections.

Distributions

We will continue to send monthly distributions for LIV at Valley Ranch. You will receive the next distribution by the end of the month.

Operations

Last month, we projected at 90.7% occupancy rate through the end of July. Due to our leasing incentives and marketing strategies, we were able to realize a 93.9% occupancy rate. The preleased occupancy is 92.4% through the end of the month.

We were able to increase our retention rate by cancelling notice to vacates with incentives for residents to stay. Leasing traffic also increased because of our increased Facebook advertising, more local business marketing, and our increased Apartments.com package.

The entire staff has returned to working in the leasing office, which help increase some efficiencies, and will continue to focus on these same marketing strategies.

Renovations

New directional signage has been installed. Additional signage, including the monument, is in production. The carport project is nearing completion.

We are continuing to offer a mix of upgraded units and classic units to potential renters. Overall, we are achieving our projected rents on upgraded units and are exceeding our projected rents by $2 on the 27 upgraded units leased over the previous three months.

Resident Activities

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

Back to School Drive
Root Beer Float Day
Food Truck

June 2020

One of our main focuses at LIV at Valley Ranch, in addition to conserving your capital investment, is to maintain a 90%+ occupancy rate during the coronavirus pandemic. We’ve accomplished this goal thus far and are currently implementing strategies to continue to do so.

Here are some other updates on LIV at Valley Ranch 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 LIV at Valley Ranch. 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

Last month, we were preleased at 89.0%. However, we were able to achieve our goal of an occupancy above 90%. Current occupancy is 90.5% and preleased occupancy is 90.74%. We are confident with the right leasing incentives, we’ll realize this preleased occupancy, and ideally achieve a higher rate.

We had many notice-to-vacates from residents who lost their jobs, were furloughed, or had contract work expire. Our expectation is for the job market to stabilize as Dallas continues its rapid reopening attempts. With the rise of new cases, the city has tampered their reopening expectations, but the state of Texas still wants to move forward safely and swiftly.

We are also focused on canceling these notice-to-vacates by offering stay incentives.

To drive more traffic to LIV at Valley Ranch, we increased our advertising on Facebook, which is a major driver of traffic. We also hired a new leasing consultant who is a better fit for the property, are targeting more local business and increased our marketing spend on Apartments.com.

Additionally, our actual expenses continue to be in-line with our initial projections, which has helped our net operating income.

Renovations

Exterior renovations continue to move forward at a good pace. The new fitness center is completed. Click here for pictures.

We’ve received the permit to construct the new monument sign, which will be installed this month. Lastly, the carport project is halfway completed.

We are also continuing to move forward with interior renovation projects. To offer a diverse mix of product, we are offering upgraded units as well as classic units. The rents on all upgraded units are meeting out projections. Also, 15 upgraded units were leased over the last three months and exceeded our projections by $3.

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, this will include Breakfast On The Go.

 

May 2020

 

One of our main focuses at LIV at Valley Ranch, in addition to conserving your capital investment, is to maintain a 90%+ occupancy rate during the coronavirus pandemic. We’ve accomplished this goal thus far and are currently implementing strategies to continue to do so.

Here are some other updates on LIV at Valley Ranch 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 LIV at Valley Ranch. 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

The current occupancy rate is 91.3% (compared to 93.4% last month) and preleased occupancy is 89.0%. Preleased occupancy is 89% because we had many “notice-to-vacates” from residents who lost their job, were furloughed, or had contract work expire. We expect that this will be short-term issue since the job market is stabilizing as Dallas continues its rapid reopening. Therefore, our immediate solution is to cancel “notice-to-vacates” by offering stay incentives. Then, once the job market stabilizes, these residents will be able to pay their full rent again.

Additionally, our actual expenses continue to be in-line with our initial projections, which has helped our net operating income.

 

Renovations

Exterior renovations continue to move forward at a good pace. Landscaping upgrades and the new package room are complete. The new signage is currently in permitting and the fitness center upgrade is nearing completion.

We are also continuing to move forward with interior renovation projects. And in order to offer a diverse mix of product, we are offering upgraded units as well as classic units. The rents on all upgraded units are exceeding projections by an average of $1. This also holds true for the 15 upgraded units leased over the last three months.

 

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:

  • Quarantine Bingo
  • “Show Us Your Favorite Space” event

 


April 2020

 

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

Here are some updates on LIV at Valley Ranch 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 LIV at Valley Ranch. 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.

 

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:

  • Quarantine Bingo
  • Netflix and Chill Movie Night
  • Scavenger Hunt

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 LIV at Valley Ranch, 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 76.2%. This means we will be able to cover all expenses, and conserve your investment, at an occupancy rate that is 76.2% 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 LIV at Valley Ranch.

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. Unit interior renovations and all exterior capex projects are underway.

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 LIV at Valley Ranch 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:

  • Virtual Movie Night
  • Social Distance Egg Hunt
  • Virtual Community Bingo

 

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

 

We are currently uploading the information for LIV at Valley Ranch into the new investor portal. You will receive an invitation to log into your account by March 31st.

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.

 

Landscaping and major exterior capex projects are underway

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

    • Permit Meet & Greet – March 4th
    • Breakfast On The Go – March 18th
    • Community 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 as we continue to implement our value-add business plan at LIV at Valley Ranch.

You will receive your first distribution by the end of the month. It will cover the time we owned the property in December (5th to 31st) and all of January. Also, if you submitted your funds 30 days prior to the closing date (before November 5th), 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 one-time interest payment will be included in this first monthly distribution as well.

After the first distribution, we will send the prorated 10% to Class A Investors and 7% to Class B Investors by the end of each month, starting in March. Then, after 12-months of ownership, we will evaluate the performance of LIV at Valley Ranch and cash flow above the 7% return will be distributed to Class B Investors, if applicable.

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 in the process of renovating our first batch of units. Scopes of work have been finalized for the exterior capex budgets:

    • Contractors are being mobilized and work will begin this month

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

    • Housing Event for HOA – February 18th
    • We Want To Stay Party – February 20th

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

 

Welcome to your first monthly recap email for LIV at Valley Ranch (Formerly The Oaks at Valley Ranch).

We will send the first distribution for LIV at Valley Ranch by the end of February. It will cover the time we owned the property in December (5th to 31st) and all of January. Also, if you submitted your funds 30 days prior to the closing date (before November 5th), 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 10% to Class A Investors and 7% to Class B Investors by the end of each month, starting in March. Then, after 12-months of ownership, we will evaluate the performance of LIV at Valley Ranch and cash flow above the 7% will be distributed Class B Investors, if applicable.

We are finalizing the scope of works for capital expenditure projects.

We will be rebranding the property to LIV at Valley Ranch.

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

    • Bagel Day – January 15th
    • Popcorn In The Office – January 20th
    • Super Bowl Tailgate Party – January 31st

In related news, an article discussing the strong growth in professional services in Dallas Fort Worth’s office market stated that Las Colinas-Irving currently has 2 million square feet of Class A office product under construction. Additionally, Las Colinas has added over 54,000 employees since 2009, which is “equivalent to a full Boeing 737 landing in Las Colinas every day for a year, unloading its passengers and everyone staying.” Click here to read more.

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.