Ashcroft Capital AVAF2 Fund 2 Status - Potential Capital Call?

[David Pike]

I just received an email this morning about Fund 2 with an update on first quarter performance. They had paused distributions in 2023. I calculated the overall DSCR to be 0.77.

1) I know Ashcroft's Fund 1 just had a 20% capital call. Based on the charts below, do you think Fund 2 investors should be expecting a capital call as well? 

2) For Fund 2 investors, would it be beneficial for Ashcroft to sell the buildings now so we can recoup some of our investment instead of the fund losing $580k/year, buying more rate caps, and having a capital call? See charts from Ashcroft below.

FROM ASHCROFT:
Based on projections, we anticipate achieving a 1.0x DSCR by the end of 2024. In the interim, we have a $4M reserve balance to cover any cash shortfall.

Debt Terms - We anticipate re-evaluating a refinance in 12-24 months, as the capital markets improve. Given current cap rate expansion, and the interest rate
environment, it would require a significant capital infusion to refinance now.