Preserve at Preston Update History

*formerly the Highlands of Preston

June 2020

The operations at Preserve at Preston 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 Preserve at Preston over the previous 30 days to preserve your capital investment:

Distributions

Due to our strong collections since the onset of the coronavirus pandemic, we will be able to send another monthly distribution for Preserve at Preston. 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

Maintaining occupancy continues to be the number one challenge at Preserve on Preston. The current occupancy is 84.7% and preleased occupancy is 85.3%. As we mentioned last month, this is due in part to the property manager not being to the level we need at Preserve on Preston. We now have a new manager, Corrie, who came over from LIV on the Green. Before we acquired Preserve on Preston, the previous owner brought her over to stabilize the asset from an under performing property manager. She was successful then, so we are confident that she will be successful now. Since taking over, Corrie has been proactive and is building a solid team, including two new leasing agents and an assistant property manager who previously worked at The Avery.

Another action we’ve taken to improve the operations at Preserve on Preston is temporarily relocating our co-Founder, Frank, to Dallas. He has and will continue to spend a significant amount of time at Preserve on Preston. 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
Hired a human sign spinner
Stayed open on the Fourth of July
City Gate is currently creating a plan of action to ramp up marketing efforts to increase traffic.

We moved off of Lease Rent Options (i.e., dynamic pricing) and set new rents with the goal of getting back to 90% occupancy.

Also, we are focusing on increasing revenue in other ways. For example, we’re increasing carport occupancy.

Renovations

We are continuing to move forward with interior renovation projections. However, we are doing a mix of upgraded units and turning classic units to have a good mix of product.

Also, Frank toured all the surrounding competitor communities. We’re going to test out a new, reduced renovation scope that will be more in-line with the market and should deliver solid premiums.

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:
Taco Tuesday
Yappy Hours at the Dog Park
July Birthday Cookies

 

May 2020

 

The operations at Preserve on Preston have been affected by both the coronavirus pandemic and the resulting unemployment, as well as by now-resolved management challenges. Our current residents are paying rent, but as you will see in more detail below, the challenge is finding new qualified residents.

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

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

 

Distributions

Due to the strong collections since the onset of the coronavirus pandemic, we will be able to continue to send out monthly distributions for Preserve at Preston. 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

Maintaining occupancy is the number one challenge at Preserve on Preston current occupancy is 87.7% (compared to 89.0% last month) and preleased occupancy is 87.0%.

One reason for the sub-90% occupancy is that many prospective residents do not meet our strict qualifications because they have debts with other landlords and/or lost their jobs. Another reason was our property manager not performing at the level we need at this property. City Gate, our property management company, terminated this manager and replaced her with a new manager that will help us achieve our goals. We also hired two new leasing agents.

The new manager was moved over from another asset in our portfolio, LIV on the Green. In fact, she was the manager at Preserve at Preston before we owned it. The previous owner brought her over for similar reasons – to replace an underperforming property manager. Therefore, she has previous experience at this property and in the submarket, so we’re expecting that she is the long-term answer for us here.

In addition to bringing over a new property manager and hiring more leasing agents, we have also moved our rents to LRO (i.e., dynamic pricing) at the recommendation of our management company. This new pricing structure, which lowers the rents, should help us get our occupancy back above 90%.

Collections from the in-place residents has been strong. This means we don’t expect a large uptick in bad debt once the eviction moratorium set forth in the CARES Act expires in August.

 

Renovations

We are continuing to move forward with interior renovation projects. However, due to the move to LRO pricing to increase occupancy, the rents demanded on our upgraded units are below our projections. These reductions should be temporary and will reset once we’ve increased the occupancy rate and collections.

 

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:

  • Live at Five Bingo
  • Kona Ice Truck
  • Father’s Day Cookies with Dad

 


 

April 2020

 

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

Here are some updates on Preserve at Preston 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 Preserve at Preston. 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:

  • Live at Five Virtual Bingo
  • Kona Ice Truck
  • Virtual Birthday Celebrations for May

 


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 Preserve at Preston, 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 74.2%. This means we will be able to cover all expenses and conserve your investment, at an occupancy rate that is 74.2% 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 Preserve at Preston.

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 6 new units in March.

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

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

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

Everyone at Preserve at Preston 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 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.

 

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

 

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

 


February 2020

 

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

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

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

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

 

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

Capital expenditure update:

    • Installing Amazon Lockers week of March 16th

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

    • Pizza Renewal Party – March 5th
    • St. Patty Happy Hour – March 17th
    • Pancakes and Pajamas – March 28th

In related news, Dallas-Fort Worth ranked 2nd out of all major US cities in the forecasted net migration in 2020 by Marcus and Millichap. Dallas-Fort Worth is expected to have a net migration of 69,600 people in 2020, which is 0.9% of its population. This is great news and reinforces our thoughts on the continued demand for multifamily housing in the market. Click here to learn more.

 


January 2020

 

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

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

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

 

Here are some property-specific updates from the month of January.

We are beating our projected rents by $8 for all newly-renovated unit leases.

Capital expenditure update:

    • Landscaping overhaul is completed
    • Concrete and masonry repairs are completed
    • Installing Amazon Lockers February 25th

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

    • Kids Valentine Crafts – February 6th
    • Wine Down Wednesday – February 12th
    • Facebook Bingo – February 27th

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.

 


November 2019

 

We are beating our projected rents by $20 for all newly-renovated unit leases.

Capital expenditure updates:

    • We officially rebranded to Preserve at Preston and the new monument sign is installed (Click here for pictures). HD pictures will be coming soon
    • Click here for HD pictures of the completed model unit
    • Landscaping overhaul is in progress
    • Concrete and masonry repairs are underway

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

    • Toys For Tots – December 5th
    • It’s a Wrap Gift Station – December 16th to 20th
    • New Years Gingerbread House Kids Event – December 28th

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 have completed renovations on the first 5 units and they are currently being marketed for rent:

    • Click here for a picture of the renovated model unit.
    • All exterior projects are moving forward.

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

    • Munchies At The Mailbox – November 7th
    • Breakfast On The Go – November 19th
    • Donuts & Crafts – November 23rd

In related news, the US census is hiring nearly 33,000 people in Dallas and Fort Worth to count every person living in the Dallas-Fort Worth Metroplex in 2020. Pay is expected to range from $18 to $25 an hour. Click here to learn more.

 


September 2019

 

As a reminder, we will send the first distribution for the Highlands of Preston at the end of October. It will cover the time we owned the property in August (16th to 31st) and all of September. Also, if you submitted your funds 30 days prior to the closing date (before July 16th), 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 7.2% by the end of each month, starting in November. Then, after 12-months of ownership, we will evaluate the performance of the Highlands of Preston and cash flow above the 7.2% will be distributed, if applicable.

We are in the process of renovating 5 units

All exterior projects are moving forward

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

    • Meet The New Manager – 10/11
    • Brunch – 10/19

 


August 2019

 

Welcome to your first monthly recap email for the Highlands of Preston.

We will send the first distribution for the Highlands of Preston at the end of October. It will cover the time we owned the property in August (16th to 31st) and all of September. Also, if you submitted your funds 30 days prior to the closing date (before July 16th), 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 7.2% by the end of each month, starting in November. Then, after 12-months of ownership, we will evaluate the performance of the Highlands of Preston and cash flow above the 7.2% will be distributed, if applicable.

We are obtaining bids for all interior and exterior capex projects

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

    • New Staff Meet-and-Greet – 9/6
    • Blanket Top Theater – 9/18
    • Sip and Paint – 9/25

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.