The Oaks at Valley Ranch Update History

The Oaks at Valley Ranch

March 2022

At Oaks at Valley Ranch, occupancy was 94.1%, and collections were 98.5%.

Sale Update

We are selling Oaks at Valley Ranch. The anticipated closing date is May 5, 2022. We are grateful for your partnership Oaks at Valley Ranch. If you elected to 1031, we look forward to continuing this success with the Halston 5 portfolio. If you elected to cash out, your proceeds are anticipated to be paid in accordance with the Redemption Agreement. A formal closing notice will be sent after the sale.

Operations

In March, occupancy increased to 94.1% (compared to 91.9% in February), and trending occupancy is 92.9%. Collections on occupied units increased to 98.5% in March (compared to 97.2% in February).

Eleven new units were renovated in March, and 355 units have been renovated since acquisition. On new leases signed over the past two months, the average rent rate has exceeded our projections by $191.

Distributions and Financials

Due to the impending sale, we will include your final monthly distribution with the sale proceeds.

You can access the Q1, 2022 financial package here.

Portal Update

We continue to work through the transition to our new portal and we will continue to transfer over your existing holdings, past distributions and documents.

You may still view your current investment information and access historical documents in the IMS platform. Questions regarding access to your portal in Juniper Square and/or IMS should be sent to investors@ashcroftcapital.com

February 2022

At Oaks at Valley Ranch, occupancy was 91.9%, and collections were 97.2%.

2021 Tax Documents

Your 2021 K-1 is anticipated to be available by late this evening. You will receive an email when the form is available to download from the Juniper Square portal.

Sale Update

We plan on selling Oaks at Valley Ranch in mid-May. If you haven’t already read the sale announcement, you can access that email here. As a reminder, we are offering a 1031 into Halston 5. If you have not already expressed your interest in the 1031 or cash out options, please do so here. We expect formal election documents to be available by the end of April. However, we are asking that you please express your interest no later than April 10.

Operations

In February, occupancy was 91.9% (compared to 92.4% in January), and trending occupancy is 91.5%. Collections on occupied units increased to 97.2% in February (compared to 97.7% in January).

Seven new units were renovated in February, and 344 units have been renovated since acquisition. On new leases signed over the past two months, the average rent rate has exceeded our projections by $171.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of this month.

We anticipate sending your February distribution through Juniper Square (JSQ), our new investor portal, by the end of March. The format of the notification email through JSQ will be different from previous notifications. To ensure that you are receiving notifications, please approve Juniper Square as an authorized contact or check your spam folder.

Portal Update

We mentioned in previous updates, that we are transitioning to JSQ from our previous platform, IMS. We are now in phase two of the data migration to JSQ. Once phase two is complete, you can expect to see all of your current holdings with Ashcroft, along with previous distributions, and have the ability to update your personal information like addresses and bank accounts. We anticipate that phase two will be completed by early June.

January 2022

Operations

In January, occupancy was 92.4% (compared to 93.9% in December), and trending occupancy is 90.5%. Collections on occupied units increased to 97.7% in January (compared to 97.1% in December).

Eighteen new units were completed in January, and 337 units have been renovated since acquisition. On new leases signed over the past two months, the average rent rate has exceeded our projections by $157.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of the month.

Distributions will be processed in the same manner as in months prior. We anticipate sending your February distribution through Juniper Square (JSQ), our new investor portal, by the end of March. The format of the notification email through JSQ will be different than previous notifications. To ensure that you are receiving notifications please approve Juniper Square as an authorized contact or check your spam folder.

We will continue to send monthly distributions, which will be sent out by the end of this month.

Portal Update

We mentioned in December’s update, that we are transitioning to JSQ from our previous platform, IMS. We are now in phase two of the data migration to JSQ, which has been delayed due to the large amounts of data being transferred. We now expect the transition to be completed by the end of March. Once phase two is complete, you can expect to see all of your current holdings with Ashcroft, previous distributions, and have the ability to update your personal information like address or bank accounts.

We anticipate a complete migration of documents, including access to historical documents, to be completed by the end of May or early June at the latest. You may still view your current investment information and access historical documents in the IMS platform. Questions regarding access to your portal in Juniper Square and/or IMS should be sent to investors@ashcroftcapital.com

2021 Tax Documents

Your 2021 K-1 is anticipated to be available by March 31, 2022. You will receive an email when the form is available to download from the portal.

December 2021

At Oaks at Valley Ranch, occupancy was 93.9%, and collections were 97.1%.

Distributions

We are proud to announce that because of the performance of Oaks at Valley Ranch, we will be distributing an additional 0.5% this month which will bring this year’s distribution to 7.5%. As a reminder, we initially projected 7.4%. This means that, as a Class B investor, if you invested $100,000, you will receive a distribution in the amount of $1,083.33.

Class A investors will continue to receive their 10% annualized distribution.

The Q4 financials (rent roll and trailing 12-month profit and loss statement) are now available on the Investor Portal. Log in to your account to view by clicking here.

Portal Update

We have begun the transition from IMS to Juniper Square. Currently, Juniper Square is only being utilized for the Ashcroft Value-Add Fund II (AVAF2). However, we will be fully transitioning all investments to Juniper Square. This transition is anticipated to be completed by February 28. If you have not yet received your invite to Juniper Square for the AVAF2, please reply to this email to request a new invite.

Once the transition is complete, you will receive an email to set your password for Juniper Square if you have yet to do so prior to then.

Operations

In December, occupancy was 93.9% (compared to 94.5% in November), and trending occupancy is at 93.2%. Collections on occupied units increased to 97.1% in December (compared to 96.6% in November).

Eleven new units were completed in December, and a total of 319 units have been renovated since acquisition. On new leases signed over the past two months, the average rent rate has exceeded our projections by $110

November 2021

At Oaks at Valley Ranch, occupancy was 94.5% and collections were 96.6%.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of the month.

Portal Update

In 2022, Ashcroft will upgrade the investor portal to Juniper Square. You can expect to receive an email with sign-up instructions no later than January 11, 2022. Once you receive it, you will be able to sign up for access to the new investor portal. If needed, you will be able to update or change your personal or banking information once the new portal is launched. We appreciate your patience during the transition and look forward to offering a better overall experience with Juniper Square.

Operations

In November, occupancy increased to 94.5% (compared to 92.4% in October), and trending occupancy is higher at 94.7%. Collections on occupied units were 96.6% for November (compared to 97.9% in October).

Eight new units were renovated in November, and a total of 308 units have been renovated since acquisition. On new leases signed over the past two months, the average rent rate has exceeded our projections by $47.

Additionally, Texas Rent Relief has announced the exhaustion of its funding. No more approvals will be granted and we are directing residents to other charitable organizations that are still providing rent relief.

October 2021

Oaks at Valley Ranch

At Oaks at Valley Ranch occupancy, is at 92.4%, and collections are at 97.9%.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of the month.

Operations

Current occupancy is at 92.4% in October (compared to 93.6% in September), and preleased occupancy is at 92.4%. Collections on occupied units increased to 97.9% for October (compared to 97.8% in September).

Fourteen new units were renovated in October and a total of 300 units have been renovated since acquisition. On new leases signed over the past two months, the average rental rate has exceeded projections by $9.

September 2021

Oaks at Valley Ranch

At Oaks at Valley Ranch Occupancy, is at 93.6% and collections are 97.8%.

Distributions and Financials

We will continue to send monthly distributions, which will be sent out by the end of the month.

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

Operations

Current occupancy increased to 93.6% in September (compared to 93.4% August), and preleased occupancy is higher at 98.7%. Collections on occupied units were 97.8% for September (compared to 97.9% in August).

No new units were renovated in September and a total of 286 units have been renovated since acquisition. In previous updates there were units reported that were contracted for upgrade, but the work had not yet commenced. Some units have been removed from the pipeline and therefore the count has decreased. Going forward, we will only be reporting units that have either been completed or are truly in progress.

On new leases signed over the past two months, the average rent rate has matched our projections.

August 2021

Oaks at Valley Ranch

At Oaks at Valley Ranch, occupancy is 93.4% and collections are 97.9%.

Distributions

Monthly distributions were sent out yesterday with the accompanying email notification.

Operations

Current occupancy is 93.4% in August (compared to 94.1% July), and preleased occupancy is higher at 99.8%. Collections on occupied units were 97.9% for August (compared to 97.8% in July).

In the month of August average rents over the past two months exceeded projections by $2.

July 2021

At Oaks at valley Ranch Occupancy is 94.1% and collections are 97.8%.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of the month.

Operations

Current occupancy increased to 94.1% in July (compared to 92.1% June), and preleased occupancy is 94.3%. Collections on occupied units were 97.8% for July (as they were in June). We renovated 48 new units for a total of 288 units since acquisition. In July, we achieved rents $27 over projections an increase of $23 in average rents from June.

June 2021

Occupancy is 91.1% and collections increased to 97.8% at Oaks at Valley Ranch.

Distributions and Financials

We will continue to send monthly distributions, which will be sent out by the end of the month.

The Q2 Financials (rent roll and trailing 12-month profit and loss statement) are now available on the Investor Portal. Log in to your account to view by clicking here.

Operations

Current occupancy is 91.1% (compared to 92.1% in May) and preleased occupancy remains higher at 99.6%. Collections on occupied units was increased to 97.8% for June (compared to 95% in May).

We renovated 22 new units and these were made available to lease over the last month for a total of 229 units since acquisition. In June, we achieved rents $21 over projections. Renovated units are leased at 80.4% which is an opportunity for growth.

May 2021

Occupancy is up to 92.6% and continues to trend in the 90s while, collections increased to 95%.

Distributions

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

Operations

Current occupancy is 92.6% (compared to 92.1% last month) and pre-leased occupancy sits at 91.6%. We continue to trend towards the mid-90s for the summer months. Collections on occupied units was 95% for May (compared to 94.2% for April).

21 new units were renovated and made available to lease over the last month for a total of 207 units since acquisition. Over the past two months, 40 upgraded units were leased, representing 45% of the total. These recently leased units are missing projections by an average of $11 (compared to $22 last month).

Resident Activities

We are continuing to be creative with the themes of the resident appreciation events we are hosting and in June these included:

Summer Kickoff Party
June Birthday Celebrations

April 2021

Occupancy (92.1%) increased, and collections (94.2%) remained strong at Oaks at Valley Ranch.

Update on Impact of Inclement Weather

Work is currently underway at Oaks. It began on May 24^th and our consultants are projecting that it will continue until around June 25^th.

Distributions

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

Operations

Occupancy increased to 92.1% (up from 89.4% last month) and preleased occupancy is 93.0%. We are trending in the mid-90s for the summer months. Collections on occupied units was 94.2% for April (compared to 97.0% for March).

55 new units were renovated and made available to lease over the last month for a total of 186 units since acquisition. We are coming in under our rent projections by an average of $23, three floorplans are performing above our projections and the increase in occupancy should allow us to begin exceeding our projections entirely in the coming months.

March 2021

Occupancy (89.4%) is trending back into the 90s and collections (97.0%) remain strong.

Update on Impact of Inclement Weather

Our consultants began scoping accessible units on April 15th. They are returning soon to gain access to the remaining units. We expect them to complete and submit their estimate in the beginning of May.

Distributions

As a reminder, we sent out an extra distribution of 1% last month to Class B investors. We projected a year 1 return to Class B investors of 7% but with this 1% distribution we achieved an 8% return for year 1.

The extra 1% distribution was sent to Class B investors last month, along with the regular 1/12 of the 7% annualized return. For example, if you invested $100,000, you received $1,583.33.

Congratulations again on a successful first year of ownership. We will evaluate the performance of the Oaks at Valley Ranch at the end of year 2 and send an extra distribution to Class B investors if applicable.

Financials

The Q1 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 89.4% (compared to 89.8% last month) and preleased occupancy is 91.5%. Collections on occupied units was 97.0% for March. As a reminder, we have our most experienced Birchstone regional manager overseeing the Oaks at Valley Ranch, which is one of the reasons why occupancy is trending back into the 90s.

Overall, we are achieving our projected rents on the upgraded unit leases.

Resident Activities

We continue to be creative with the themes of the resident appreciation events we host while following social distancing guidelines. In April, these events included:

Grab and Go Breakfast (pictured below)
Earth Day
Meet and Greet Happy Hour

February 2021

Occupancy (89.8%) decreased while collections (98.7%) were nearly perfect at Oaks at Valley Ranch.

Update on Impact of Inclement Weather

A total of 63 units were affected. Most of the damage is concentrated around the washer/dryer closets and a few exterior walls. We are currently working on determining the repairs costs as we continue to investigate the damages. All expenses incurred will be covered by our insurance.

Distributions

December marked our first full year of ownership of the Oaks at Valley Ranch. As a result of the Oaks at Valley Ranch’s performance, we will be sending out an extra distribution of 1% this month. We projected a year 1 return to Class B investors of 7% but with this 1% distribution we will achieve an 8% return for year 1.

The extra 1% distribution will be sent to Class B investors by the end of the month, along with the regular 1/12 of the 7% annualized return. For example, if you invested $100,000, you will receive $1,583.33.

Congratulations on a successful first year of ownership. We will evaluate the performance of the Oaks at Valley Ranch at the end of year 2 and send an extra distribution to Class B investors if applicable.

2020 Schedule K-1 Tax Report

As a friendly reminder, please review your investment profile to make sure you have inputted the information required for your 2020 K-1. K-1s will be uploaded into the investor portal by the end of the month. You will receive an email notification when they become available. If you are not able to log into the investor portal, or your invitation has expired, please email InvestorRelations@AshcroftCapital.com.

Operations

Current occupancy is 89.8% and preleased occupancy is 87.7%. Collections on occupied units was 98.7% for February.

Birchstone, Ashcroft’s in-house property management company, has taken over the management at Oaks at Valley Ranch, and a new site manager is in-place. Also, we have placed our most experienced regional manager at Birchstone to oversee the asset.

Because of the Birchstone transition, we did not host any resident activities this month. Socially distanced events will continue next month.

Renovations

We picked up the pace of renovations last month, upgrading most of the vacant units and units with notice-to-vacates.

27 new units were renovated over the past month for a total of 122 units upgraded since acquisition. Rents on upgraded units are meeting our projections. We are missing our rent projections by $6 on the 13 upgraded units leased over the past three months solely due to occupancy temporarily dropping.

December 2020

Occupancy (90.2%) remains in the 90s and collections (98.7%) are nearly perfect at Oaks at Valley Ranch.

Distributions

You will continue to receive monthly distributions, which you will receive by the end of this month.

Financials

The Q4 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.

Friendly Reminder: Please review your investment profile to make sure that it is complete with the information required for your 2020 K1. K1s will be uploaded into the investor portal by the end of March 2021. If you are not able to log into the investor portal, or your invitation has expired, please email InvestorRelations@AshcroftCapital.com to have it resent.

Operations

Although we were preleased at 89.6% this time last month, we were able to achieve a 90.2% occupancy rate. This is the 6^th month in a row occupancy has been in the 90s. Preleased occupancy is even higher at 92.2%. Collection on occupied units was 98.7% for December.

To further promote occupancy, we hired a new site manager who started a few weeks ago.

During a recent budget review, we discovered that we were sending the residents a reduced utilities bill as a part of our RUBS program. Fortunately, we are able to collect a portion of the lost revenue from the residents over the remaining course of their lease. We will also collect the full amount moving forward.

Renovations

We are currently in the bidding process for the new art installation being added to the property.

Three new units were renovated over the past month for a total of 95 units since acquisition. We are exceeding our projected rents by $5 on the 24 upgraded units leased over the previous three 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 January, these events included:

Facebook Virtual BINGO
Movie Night
Breakfast on the Go

November 2020

Collections (97.5%) remains strong and maintaining occupancy (91.7%) is our major focus.

Distributions
You will continue to receive monthly distributions, which you will receive by the end of this month.

Friendly Reminder: Please review your investment profile to make sure that it is complete with the information required for your 2020 K1. K1s will be uploaded into the investor portal by the end of March 2021. If you are not able to log into the investor portal, or your invitation has expired, please email InvestorRelations@AshcroftCapital.com to have it resent.

Operations
Current occupancy is 91.7%, marking the 5^th consecutive month of at least 90% occupancy. In order to continue this streak, however, we need to cancel our notice-to-vacates and attract more leasing traffic, because preleased occupancy is 89.6%.

We contribute these notice-to-vacates to staffing issues at the property. Therefore, we are in the process of finding a new site manager. In the meantime, we are promoting transfers and offering concessions to cancel NTVs, and we are increasing our advertising on Facebook, Apartments.com, and to local business to improve occupancy.

Collections remain a nonissue. Collections on occupied units is 97.5%.

Renovations
As a reminder, due to unforeseen permitting and licensing issues, we will keep the name Oaks at Valley Ranch rather than re-brand to LIV at Valley Ranch. The new signage is in production is expected to be installed by the end of the year.

Our new dog park is completed, and all private yards have been installed. We will also be adding a nice art installation to the property that our residents can interact with. Click here for a rendering of the design.

We also got HD pictures of the clubhouse (click here), fitness center (click here), and pool (click here).

We also renovated 14 new units over the last month for a total of 92 units since acquisition. On the 29 upgraded units leased over the last three months, we’ve exceeded our projected rents by $3.

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 December, these events will include:

Decorate Your Holiday Cookie and Tree Event
Holiday Patio Decorating Contest (click here for a picture of the winning patio)

October 2020

Occupancy (92.2%) increased and remained in the 90s for the fourth straight month. We also realized a perfect collections rate (100%) again for October.

Additionally, due to unexpected licensing and permitting issues with the new signage, we decided to keep the name Oaks at Valley Ranch instead of rebranding to LIV at Valley Ranch. This choice was made easier since the Oaks at Valley Ranch name is still a strong, reputable name in the Irving submarket.

Distributions

You will continue to receive monthly distributions, which you will receive by the end of this month.

Friendly Reminder: As we approach the new year, please review your investment profile to make sure that it is complete with the information required for your 2020 K1. K1s will be uploaded into the investor portal by the end of March 2021. If you are not able to log into the investor portal, or your invitation has expired, please email InvestorRelations@AshcroftCapital.com to have it resent.

Operations

Current occupancy is up to 92.2%, compared to 91.7%. This marks the fourth month of 90%+ occupancy in a row. We attribute this increase and our ability to maintain a 90%+ occupancy rate to our increased marketing efforts and offers of transfers and concessions to cancel notice-to-vacates.

Collections on occupied units remained at 100%.

Renovations

We renovated another 8 units over the last month for a total of 78 units renovated since acquisition. Rents on the upgraded unit leases are at our projected rates. Rents on the 23 upgraded units leased over the last three months are exceeding our projections by $3.

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 October’s Trunk-or-Treat Halloween event.

In November, these events will include:

Movie Night
National Sundae Day
$25 Gift Card Giveaway

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 30^th.

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 4^th to December 31^st. 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

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.

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.