Estates at Las Colinas Update History – Founders Grove Capital

formerly known as Marabella

March 2022

At Estates at Las Colinas, occupancy was 96.9%, and collections were 96.3%.

Sale Update

We are selling Estates at Las Colinas. The anticipated closing date is May 5, 2022. We are grateful for your partnership in Estates at Las Colinas. 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 96.9% (compared to 96.1% in February), and trending occupancy is 94.4%. Collections on occupied units increased 96.3% (compared to 93.6% in February).

No full renovations were completed this month and a total of 201 units have been fully renovated since acquisition. On new leases signed over the past two months, the average rent rate exceeded projections by $208.

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You may still view your current investment information and access historical documents in the IMS platform.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 Estates at Las Colinas, occupancy was 96.1%, and collections were 93.6%.

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 Estates at Las Colinas 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 96.1% (compared to 96.6% in January), and trending occupancy is 94.2%. Collections on occupied units were 93.6% (compared to 94.0% in January).

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 96.6% (compared to 97.6% in December), and trending occupancy is 94.2%. Collections on occupied units were 94.0% (compared to 94.5% in December).

No full renovations were completed this month, while 49 units were partially renovated in January. A total of 201 units have been fully renovated since acquisition. On new leases signed over the past two months, the average rent rate exceeded projections by $153.

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 Estates at Las Colinas, occupancy was 97.6%, and collections were 94.5%.

Distributions

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

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 increased to 97.6% (compared to 94.7% in November), and trending occupancy is at 96.4%. Collections on occupied units increased to 94.5% (compared to 92.9% in November).

November 2021

At Estates at Las Colinas, occupancy was at 94.7% and collections were 92.9%.

Distributions

We will continue to send monthly distributions, which will be sent out by the end of this 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 was 94.7% (compared to 96.6% in October), trending occupancy is higher at 96.1%. Collections on occupied units were 92.9% (compared to 95.6% in October).

No full renovations were completed this month and a total of 201 units have been fully renovated since acquisition. We have also implemented a partial renovation program and 50 units have been partially renovated. On new leases signed over the past two months, the average rent rate exceeded projections by $10.

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

Estates at Las Colinas

At Estates at Las Colinas, occupancy is at 96.6% and collections are at 95.6%

Distributions

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

Operations

Occupancy increased to 96.6% for October (compared to 94.4% in September). Preleased occupancy is at 96.6%. Collections on occupied units increased to 95.6% in October (compared to 93.9% in September).

One new unit was renovated in October and a total of 248 units have been renovated since acquisition. On new leases signed over the past two months, the average rental rate exceeded projections by $79.

September 2021

Estates at Las Colinas

At Estates at Las Colinas, occupancy is at 94.4% and collections are at 93.9%

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

Occupancy is at 94.4% for September (compared to 95.4% in August). Preleased occupancy is higher at 98.3%. Collections on occupied units were 93.9% in September (compared to 94.7% in August).

No new units were renovated in September and a total of 247 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 exceeded projections by $69.

August 2021

At Estates at Las Colinas, occupancy is at 95.4% and collections are at 94.7%

Distributions

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

Operations

Occupancy increased to 95.4% for August (compared to 93.2% in July). Preleased occupancy is higher at 100%. Collections on occupied units were 94.7% in July (compared to 94.6% in June).

In the month of August, we exceeded rent projections over the past two months by an average of $10.

July 2021

At Estates at Las Colinas, occupancy is at 94.2% and collections are 94.6%.

Distributions

As noted in June’s monthly update, we are moving back to monthly distributions beginning with July’s distribution, to be sent out by the end of the month. The recent performance allows us to bring back the monthly distributions to the full preferred rate, 8% per annum.

Operations

Occupancy is at 94.2% for July (compared to 95.4% in June). Preleased occupancy is 94.2%. Collections on occupied units increased to 94.6% in July (compared to 94.1% in June). We renovated 21 new units in July and have renovated a total of 257 units since acquisition. The positive momentum continued and in the month of July, we exceeded rent projections by $11.

June 2021

Occupancy is at 95.4% and collections are 94.1% at Estates at Las Colinas.

Distributions and Financials

Based on current operations and the successful trends we have seen, we are pleased to announce that beginning next month, July’s distribution, we are returning to monthly distributions.

Additionally, we will be paying out 2% by the end of the month for your Q2, 2021 distribution.

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

Occupancy remains strong at 95.4% (compared to 95.9% in May) and preleased occupancy is over 99%. Collections on occupied units was 94.1% for June (compared to 94.2% in May). Following new marketing measures at the property to drive qualified traffic occupancy and collections continue to remain steady.

We renovated 2 new units in June and have renovated a total of 224 units since acquisition. Each month, our average rents get closer and closer to projections and are trending to beat projections in July. Expenses continue to perform well compared to initial projections.

May 2021

Occupancy is at 95.9% and we are trending towards 97.5% for next month. Collections remained strong at Estates at Las Colinas with a collection rate of 94.2%.

Distributions

While momentum remains positive, we feel it prudent to remain on quarterly distributions. The next quarterly distribution is scheduled for the end of July. We will let you know in the June recap email what that distribution amount will be.

Operations

Occupancy remains strong at 95.9% and preleased occupancy is over 97%. Collections on occupied units was 94.2% for May. The new marketing measures taken last month have generated positive results as we have seen increases of both quality and quantity of traffic to the property.

Renovations

We renovated 20 new units over the last month for a total of 222 units since acquisition. Each month, our average rents get closer and closer to projections. Expenses continue to perform well compared to initial projections. Rents of upgraded units leased in the last two months are just 7% below are projections.

Resident Activities

In May we hosted a pool opening party for residents.

April 2021

Occupancy (96.2%) increased, and collections (94.8%) remained strong at Estates at Las Colinas.

Distributions

The next quarterly distribution is scheduled for the end of July. We will let you know in the June Recap email what that distribution amount will be.

Operations

Occupancy has increased to 96.2% (up from 91.3% last month) and preleased occupancy is over 97%. Collections on occupied units was 94.8% for April (compared to 96.4% for March).

We renovated two new units over the last month for a total of 202 units since acquisition. The Birchstone takeover has yielded a large increase in occupancy over the past few months. We are confident that this base will carry us back to pre-COVID levels. The recent renovations for the property are at a lower scope than we originally projected and therefore achieve lower rents. This is a move to capture the demand that currently exists in the market as of right now and put the property in the best position it can be in.

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 May, we hosted a pool opening event.

March 2021

Occupancy (91.3%) is trending into the mid-90s and collections remained strong at Estates at Las Colinas.

Update on Impact of Inclement Weather

All remediation and reconstruction has been completed at Estates at Las Colinas. The costs incurred have been approved by our insurance as well.

Distributions

You will receive a quarterly distribution by the end of the month. It will equal 1% of your initial investment. For example, if you invested $100,000, you would receive $1,000. This is less than a full quarter’s worth of preferred return, which is 2%. The difference between the 2% and the 1% you will receive will accrue and be paid out at a capital event.

The next distribution is scheduled for the end of July. We will let you know in the June Recap email what the new the distribution amount will be.

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 91.3% and preleased occupancy is 94.2%. Collections on occupied units was 96.4% for March (same as February’s collection rate).

We are still leasing our renovated units below our projections overall. However, we are beginning to hit our projections on a handful of floorplans. While we are behind on our business plan due to the operational challenges last year, the performance of the Birchstone staff here gives us confidence that we will catch up as the pandemic begins to affect the property less and less.

Resident Activities

We continue to be creative with the themes of the resident appreciation events we host while following social distancing guidelines. In April, this included a Wine Down Wednesday event.

February 2021

Occupancy (94.0%) is up, and collections (96.4%) remained strong at Estates at Las Colinas.

Distributions

The next scheduled quarterly distribution is scheduled for the end of April. We will let you know in the March Recap email what the distribution amount will be.

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

Birchstone, Ashcroft’s in-house property management company, has taken over the management at Estates at Las Colinas, and a new site manager is in-place. As a result, operations have improved dramatically.

Current occupancy is up to 94.0% (90.6% last month), and preleased occupancy is even higher at 95.9%. Collections on occupied units was 96.4% for February.

The exterior painting project will be completed by the end of the month.

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

January 2021

Occupancy (90.6%) remained in the 90s and collections (97.6%) are strong at Estates at Las Colinas.

Update on Impact of Inclement Weather

Fortunately, Estates at Las Colinas sustained minimal damage from the severe weather in DFW. Only one pipe burst, and no residents were displaced.

We are doing a surprise resident event this week. We are sending a food truck with 150 free meals and delivering 100 free cases of water for residents who had any issues as a result of the storm.

Distributions

The next scheduled quarterly distribution is scheduled for the end of April. We will let you know in the March Recap email what the distribution amount will be.

2020 Schedule K-1 Tax Report

As 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 March. 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 90.6%, which is the 2^nd consecutive month in the 90s, compared to occupancy in the mid-80s as recently as October. Preleased occupancy is even higher at 91.3%. This progress is due to our marketing team’s focus on cancelling notice-to-vacates and implementing new marketing measures to attract more qualified leasing traffic.

Collections also remained strong at 97.6%.

The property wide exterior painting project is almost completed (pictures below).

Because of the improvement in operations, we are starting a scaled down renovation program.

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 February, these events included:

Valentine’s Day Giveaway
Tag-to-Win
Freebie Friday Giveaway

December 2020

Occupancy (91.0%) remained in the 90s for the second straight month while collections (98.5) are very strong at Estates at Las Colinas.

Distributions

You will receive a quarterly distribution by the end of the month. It will equal 1% of your initial investment. For example, if you invested $100,000, you would receive $1,000. This is less than a full quarter’s worth of preferred return, which is 2%. The difference between the 2% and the 1% you will receive will accrue and be paid out at a capital event.

The next distribution is scheduled for the end of April. We will let you know in the March Recap email what the new the distribution amount will be.

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 and Renovations

Occupancy remained at 91.0% and preleased occupancy is 92.8%. This is a vast improvement from 88.9% in November and 86.6% in October. Collections are strong at 98.5%.

To continue this positive momentum, our continued focus is canceling notice-to-vacates and attracting high quality leads through our marketing efforts. Our new exterior paint project will also help these efforts. The plan is to paint the entire property a modern white to completely revitalize the current feel, as well as drive new traffic and excitement.

Interior renovations are on hold and asking rents will be reduced until we’ve achieved occupancy in the mid-90s.

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:

Breakfast on the Go
Community Online Virtual Cookbook
Freebie Friday Giveaway on Social Media

November 2020

Things are beginning to trend in the right direction at Estates at Las Colinas. Occupancy (91.1%) is back in the 90s while collections (98.7%) remained extremely strong.

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.

Distributions

We are continuing to monitor what is collected at Estates at Las Colinas through the end of the month (and into early January for residents who pay late). Due to the operational and staffing challenges in 2020, our business plan is about 12 months behind schedule. We will let you know in next month’s recap email how much, if any, we will be able to distribute.

Operations and Renovations
Occupancy increased to 91.1% (88.9% last month and 86.6% two months ago). This is the first month occupancy has been in the 90s since April. Preleased occupancy is even higher at 91.6%. Collections on occupied units remains extremely strong at 98.5%.

We attribute this improvement to the new staff. The new site manager cleaned house and put together a team who have a much more ambitious and goal-oriented mentality compared to previous teams.

The focus remains on cancelling notice-to-vacates and implementing new marketing measures to locate qualified traffic.

Because of the operational and staffing challenges in 2020, our business plan is about 12 months behind schedule. However, with our current momentum, new staff, and Frank’s continued presence at the property, we are confident going into 2021.

Renovations
In the meantime, interior renovations remain on pause and we will continue to offer reduce rents on vacant units to stabilize occupancy.

We also plan on painting the exteriors of Estates at Las Colinas. The goal is to modernize the aesthetic to improve operations by attracting more traffic. Click here for the selected paint colors and design. Click here for before and after pictures of completed buildings.

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 of how we promote our resident appreciation events on social media.

In December, these events will include:

Breakfast on the Go
Christmas Tree Decorating Contest
Freebie Friday Giveaway on Social Media

October 2020

Collections (99%) remain nearly perfect. However, occupancy (88.9%) continues to be a challenge but due to the actions of the new manager and her staff, occupancy is improving and trending above 90%.

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 88.9%, compared to 86.6% last month. We are trending to be back above 90% with a preleased occupancy of 91.3%. Collections remained nearly perfect at 99.0%.

As a reminder, we brought on a new manager last month. She has put together a new staff, and as a result we are already beginning to experience improvements to operations.

Frank is still in Dallas and will continue to work with the new management team until stabilization has been achieved.

Interior renovations are on pause until we stabilize the operations. Because of the quick progress of the new management staff, the goal is to restart within 60 days.

Distributions

The Las Colinas market was strongly impacted by the onset of COVID-19, causing high levels of unemployment. As a result, we received many notice-to-vacates (NTVs). Our new management team has been able to cancel some of these NTVs (hence the 91.3% preleased occupancy), but we’ve been at a sub-90% occupancy every month for the last six months.

Although occupancy (and therefore cash flow) is below our projections, we are confident in our new management team’s ability (along with the help of Frank) to stabilized operations but we believe it will take approximately 6 – 12 months to do so. We will determine next month, how much, if any, of a distribution will be sent out in Q4 of this year.

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 the winner of October’s Halloween patio decorating contest.

In November, these events will include:

Breakfast on the Go
Food Drive for Thanksgiving
Freebie Friday Giveaway on Social Media

September 2020

We achieved a near perfect collections rate (98.4%) last month, but occupancy (86.6%) remains a challenge due to staffing issues and the impacts of COVID-19.

Distributions

You will receive a quarterly distribution by the end of the month. It will equal 1% of your initial investment. For example, if you invested $100,000, you would 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 the preferred return and what is distributed will accrue and be paid out at sale. The reasoning behind this lowered distribution is outlined in the “Operations” section below.

The next distribution is schedule 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

Collections remained nearly perfect again last month. We collected rent on 98.4% of the occupied units. However, occupancy remains a challenge.

Current occupancy is 86.6% (compared to 88.2% last month) and preleased occupancy is 89.8%. The Las Colinas submarket of Dallas has continued to be negatively impacted by COVID-19 and the resulting unemployment. We are battling against notice-to-vacates caused by job losses, home purchases, and moves to other more rural areas outside of DFW.

To improve operations, we’ve brought on a new manager, Betsy, who comes highly recommended. She is evaluating the staff and has studied the market comps to provide us with new guidance on how to improve occupancy.

Additionally, Frank remains in Dallas and is spending a lot of time at Estates at Las Colinas to focus on improving the operations.

Renovations

All new signage has been installed (click here for pictures of the monument sign, directional signage, and leasing center signage)

Interior renovations remain on pause and will continue to offer a reduced asking rent on vacant units until occupancy has stabilized.

Once we’ve achieved stabilized, we will perform partial renovations rather than full renovations. We determined we can achieve a higher ROI with a lower spend per unit.

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:

Halloween Patio Decorating Content
Breakfast on the Go

August 2020

Collections (98.8%) are very strong at Estates at Las Colinas, however, occupancy (88.2%) continues to be a challenge.

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 plan on continuing to do quarterly distributions for this property to remain conservative. The next distribution will be going out by the end of October. We will let you know the amount of the next quarterly distribution in next month’s update.

Operations

The occupancy rate remained sub-90s. Current occupancy is 88.2% and preleased occupancy is 86.5%. The challenge stems from notice-to-vacates (NTV) from residents who have lost jobs, purchasing homes, or moving into rural areas. Additionally, many prospective residents are unqualified.

We are providing the NTV residents with wine, crackers, and cheese to cancel the NTVs and increase occupancy (Click here for a picture) and providing welcome gift packages to new residents who sign a lease (Click here for a picture).

Collections remain strong at 98.8%. However, 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 the high collections rate, we are uncertain if the renewed moratorium will 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.

In the meantime, Frank will remain in DFW and continue to spend time with Estates at Las Colinas management to reverse the occupancy rate trend.

Renovations

We will continue the pause on interior renovations and to offer lower rents until occupancy has stabilized.

Resident Activities

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

Movie Night
Birthday Party for September Birthdays
Renewal Party

July 2020

Occupancy has continued to be a challenge but is beginning to trend in the positive direction. The collections, however, continue to remain strong at Estates at Las Colinas.

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, which is 2%, the difference will accrue and be paid out at a capital event or when the property cash flow allows for it. We will let you know by October, which is the next scheduled quarterly distribution, if we will transition back to monthly distributions.

Operations

Occupancy continues to be a challenge at Estates at Las Colinas. Current occupancy has remained at 88.9%. However, preleased occupancy has increased to 90.4%. This is due to the surrounding market being hit particularly hard by the effects of the coronavirus pandemic. Therefore, a lot of the prospective residents applying for leases are not qualified. We are, however, making sure all vacant units are turned and ready to be leased so that the applicants who are qualified can move in as quickly as possible.

New marketing strategies being implemented to increase occupancy include:

Upgrading to the highest level on Apartments.com (Diamond Plus)
Offering specials and bonus incentives on our stale units (i.e., vacant for 30 days or more)
Increasing presence on Facebook and Google
Placing a banner on the clubhouse to increase walk-ins
Temporarily reducing prospects’ monthly fees (i.e., valet trash, recycling, cable, and other additional fees)

Collections at Estates at Las Colinas continue to be strong. Therefore, our focus will continue to be on increasing occupancy and generating qualified leads.

Renovations

Until occupancy has stabilized, interior renovations will remain on pause and we will continue to temporarily offer reduced rental rates on vacant units.

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 August, these events will include:
Breakfast On The Go
Renewal Party
Popsicle Pop In

June 2020

The operations at Estate at Las Colinas continue to be impacted by the coronavirus and the resulting unemployment. Collections remain strong but occupancy continues to be our main challenge. Ashcroft Capital co-founder Frank Roessler has temporarily relocated to Dallas to help our management team improve the operations.

As always, our focus remains the same – the preservation of your capital investment.

Here are updates on what we’ve done at Estates at Las Colinas over the previous 30 days to preserve your capital investment:

Distributions

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

We will be sending out a distribution by the end of the month. 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

Maintaining occupancy continues to be the number one challenge at Estates at Las Colinas. The current occupancy is 88.9% and preleased occupancy is 88.2%. The Las Colinas area has been hit particularly hard by the effects of the coronavirus pandemic and resulting unemployment.

Collections have not been an issue because residents are still paying rent. We’ve maintained a 90%+ collections rates since April. However, we are not seeing the qualified leasing traffic at the rate we’d expect for this time of the year.

The biggest action we’ve taken to improve the operations at Estate at Las Colinas is temporarily relocating our co-Founder, Frank, to Dallas. He has and will continue to spend a significant amount of time at Estates at Las Colinas. Frank and the team have been putting their heads together to figure out how to get to 95% occupancy as soon as possible. Here is a list of actions taken so far:

Upgraded to the highest level on Apartments.com (Diamond Plus)
Offering specials and bonus incentives on our stale units
Increased presence on Facebook and Google
Placed a banner on our clubhouse to increase walk-ins
Reduced prospects’ monthly fees to break even with expenses (i.e., valet trash, recycling, cable, and other additional fees)
Stayed open on the Fourth of July
Improved relationships with locators
Currently, we are focusing on creating relationships with local animal rescues, moving companies, and other small businesses to increase standing in community.

Also, we are looking into ways to help our staff turn units quicker, which will decrease vacancy. Our Director of Construction, Doug Palmer, is training staff to turn units quicker.

Renovations

We have continued our pause on interior renovations. We’ve also lowered our market rents temporarily until Estate at Las Colinas stabilizes. Frank has toured all competitor communities to help set our new pricing based on his thoughts on where we stand in the market.

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:
Hero of the Month
Popsicle Pop In
Kona Ice Truck

May 2020

The operations at Estates at Las Colinas have been affected by the effects of the coronavirus and the resulting unemployment. Our current residents are paying rent, but as you will see in more detail below, we are not seeing the qualified traffic at the rate we’d expect for this time of the year.

As always, our focus remains the same – the preservation of your capital investment.

Here are updates on what we’ve done at Estates at Las Colinas over the previous 30 days to preserve your capital investment.

Distributions

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 Estates at Las Colinas 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

Maintaining occupancy is the number one challenge at Estates at Las Colinas. We have noticed that many of our prospective residents do not meet our strict qualifications because they have debts with other landlords and/or lost their jobs due to the pandemic. The current occupancy is 87.7% (compared to 90% last month) and preleased occupancy is also 87.7%. To help spur leasing we have allowed our staff to reduce rents by up to $200 on certain renovated floor plans. Several of our competitors in the immediate submarket have also reduced rents and suspended renovations. For non-renovated units, we lowered the asking rent below market rates to help with occupancy as well during this time.

We are actively looking for ways to help our staff turn units quicker and have already implemented some strategies. For example, our director of construction, Doug Palmer who is based in Dallas, is training staff on how to more effectively turn units.

Collections from the in-place residents has been strong. Additionally, our expenses are performing well compared to our initial projections.

Renovations

We completed all major exterior capex projects prior to the coronavirus pandemic and interior renovations are still on pause until we re-stabilize.

We are, however, actively looking into partial renovations. We discovered we can achieve more digestible rental premiums and a higher return on investment in the current market by reducing our renovation scope. Doug has already priced out a partial renovation, and once we begin renovations again we will offer partially renovated units to prospects.

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:

Taco Truck
Snow-Cone Truck
Scavenger Hunt

April 2020

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

Here are some updates on Estates at Las Colinas 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 Estates at Las Colinas, 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 Estates at Las Colinas 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 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 walkthroughs 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:

Taco Truck
Snow-Cone Truck
Household Scavenger Hunt

March 2020

Distributions

One major area of focus has been rent collections. We have made arrangements with some of the residents who are facinga coronavirus-related hardship at Estates at Las Colinas 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 78.6%. This means we will be able to cover all expenses, and conserve your investment, at an occupancy rate that is 78.6% 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 Estates at Las Colinas.

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 18 new units in March.

We are instituting a “Hero of the Month” and “Hero of the Week” program that honors our 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 Estates at Las Colinas 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:

Delivered sweets and treats to employees
Delivering April birthday cards
Spread the Love with sidewalk chalk available to our residents

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. You will receive an email once they are available.

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.

We are continuing to achieve our projected rents on all newly-renovated unit leases.

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

- Spa Day – March 1st
- Personal Trainer & Health Advice – March 16th
- Raffle for Lucky Charms – March 25th

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 continuing to go well as we implement our value-add business plan at Estates at Las Colinas.

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 continuing to achieve our projected rents on all newly-renovated unit leases.

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

- Breakfast On The Go – February 14th
- Nacho Bar – February 27th
- Hershey Kiss Raffle – February 29th

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 continuing to achieve our projected rents on all newly-renovated unit leases

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

- Resident Birthday Party – January 16th
- Renewal Party – January 25th
- Resident Happy Hour – January 30th

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.

November 2019

We are continuing to achieve our projected rents on all newly-renovated unit leases

All major capital expenditure projects are completed. Click here for HD pictures of the new signage

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

- Breakfast On The Go – December 6th
- Community Awareness Event – December 12th
- Resident Wrap Party – 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 continuing to achieve our projected rents on all newly-renovated unit leases

Capital expenditure updates:

- Landscaping is nearing completion and all other major capex projects are completed.

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

- Management Meet & Greet – November 13th
- Renewal Party – November 19th
- Police Officer Community Awareness – November 29th

In related news, Microsoft plans to hire as many as 575 employees to expand its technology center in Irving, TX, which is the submarket in which Estates at Las Colinas is located. Microsoft also plan on investing $31 million into this expansion. This reinforces our thoughts on the strength of the Irving submarket. Click here to learn more.

September 2019

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

We are continuing to achieve our projected rents on all newly-renovated unit leases

Leasing:

- We have hired an experienced and acclaimed property manager and her team to drive occupancy over 90%.
- We have added sign spinners and direct mailers to our marketing outreach as well

Capital expenditure updates:

- We are putting the final touches on the landscaping to finish the exterior capex projects.

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

- Fall Kick-Off Party – 10/17
- Mini-Pumpkin Painting – 10/24
- Trick-or-Treat – 10/31

August 2019

We are continuing to achieve our projected rents on all new renovated unit leases

We are continuing our increased marketing outreach and are offering a rent special to increase occupancy. We are projected to exceed 90% occupancy by the end of the month.

Capital expenditure updates:

- Clubhouse and resident lounge renovations are completed. Click here for pictures
- Click here for pictures of the updated pool area, including a fountain feature
- Signage: signage package is completed and the new monument sign is being installed 9/17

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

- Community Awareness Event
- NFL Kickoff Party
- New Team Meet-and-Greet Party

In related news, the ride-sharing company Uber plans on opening a new regional hub in downtown Dallas. This is expected to bring about 3,000 new jobs to the area and result in a $400 million annual payoff. Click here to learn more.

July 2019

To increase occupancy, we are increasing our outreach marketing and offering a rent special, plus we expect an increase in traffic due to the new amenities and clubhouse being nearly completed.

We are continuing to achieve our projected rents on all newly-renovated unit leases.

Capital expenditure updates:

- Roof repairs are completed
- The resident lounge is completed – click here for a video
- The clubhouse renovations are in progress
- New signage is in production
- Landscaping upgrade is in progress
- Concrete repairs are in progress

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

- Brunch – 8/10
- Pool Party – 8/17
- Happy Hour – 8/23

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

We are achieving our projected rents on all new renovated unit leases.

Capital Improvement Projects:

- Clubhouse: Renovation is in progress and scheduled to be completed by the end of July.
- Resident Lounge: Renovation is in progress and scheduled to be completed by the end of July.
- Package Room: In progress.
- Signage: In progress.

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

- Sundae Bar: 7/7
- Breakfast-on-the-Go: 7/11
- Pizza Party: 7/16
- Pool Party: 7/27

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

As a reminder, we officially rebranded Marabella and the new name is Estates at Las Colinas. Here are some property-specific updates from the month of May:

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

Capital Improvement Projects:

- Clubhouse: Demolition is underway and renovations are scheduled to be completed by the end of July.
- Resident Lounge: Demolition is underway and renovations are scheduled to be completed by the end of July.
- Pool Furniture: Scheduled for delivery the week of 6/17.
- Landscaping: In progress.
- Signage: In progress.

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

- Breakfast at the Gate: 6/11
- Resident Meet & Greet + Model Open House: 6/19
- Popsicles by the Pool: 6/28

In related news, 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

We have officially rebranded the property and the new name is Estates at Las Colinas.

We have begun our interior and exterior renovation projects. Click here for over 50 HD pictures of Estates at Las Colinas

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

- Ice Cream Social: 5/18
- Pizza and Wine: 5/24
- Breakfast-at-the-Gate: 5/31

In related news, Allstate Insurance Co. plans to hire 1,300 new employees and invest over $11 million over the next 5 years in a major ramp-up of its Irving operations. Click here to learn more.

Additionally, in HFF’s monthly MSA employment report, Dallas-Fort Worth ranked 2nd in the nation in total new jobs and percent job growth, and was one of only two MSAs to add more than 100,000 jobs. Click here to learn more.

March 2019

We closed on Marabella at the beginning of March and have begun to implement our value-add business plan.

Numerous residents approached management during our takeover and expressed optimism and happiness for the management change

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

- Breakfast-on-the-Go: 4/12
- Open House: 4/20
- Yappy Hour: 4/27

In related news, the majority of North Texas office leasing was in Dallas’ far northern suburbs including Las Colinas. Click here to learn more.

December 2018

We are purchasing Marabella, a 415-unit apartment community located in Las Colinas, an upscale submarket that attracts affluent renters in the Dallas suburb of Irving, TX.

Value-add opportunities:

- Las Colinas is a strong submarket that is home to eleven Fortune 500 companies, including six headquarters. These headquarters are all located within a six-mile radius of the property, including ExxonMobile and Kimberly-Clark
- After we were awarded the deal, McKesson (#6 on the Fortune 500 list) announced that they will relocate their global headquarters to Las Colinas and will be located within a 10-minute drive of the property
- We will be updating 100% of the unit interiors to meet the demands of the renters and are projecting rents that are $300 to $500 below the market leaders
- The neighborhood in which Marabella is located has an average home value of $445,000, including homes valued at over $2 million within one mile. The average household income in the area is over $134,000
- Las Colinas is highly desirable to young professionals given its proximity to major employers and entertainment destinations, including the Toyota Music Factory, a $173 million concert and cinema venue, and Water Street, a $100 million lakeside development with over 60,000 sqft of shopping and restaurants

Additional information:

- Projected to exit in 5 years with the following returns:
  - 9.0% investor cash-on-cash return (excluding proceeds from sale)
  - 25.3% investor cash-on-cash return (including proceeds from sale)
  - 19.8% IRR
- Min investment: $50,000
- Closing date: 3/29/19
- Funding date: 12/20/18 thru 2/28/19 (first-come, first-serve basis)

Click here to view the detailed Investment Package.