All Forum Posts by: Lisa Jones

In my opinion there was a huge miss on their part and big failure in communicating earlier they were facing this many issues. Yet, I continued to get bombarded messages, emails and invitations to webinars about participating in Fund 3, and QA sessions to learn more about how to invest more there. But until recently, it seems silence on the status of Fund1. If AVAF1 was indeed in trouble 1 year ago, as we are finding out now. It would have been nice to have a Q&A session 12 months ago to discuss options and strategies.

5 Votes

Quote from @Bobby Larsen:

Quote from @Lisa Jones:

I don’t understand why they need to bring in Preferred Equity AND do a capital call. Can’t the PE partner just cover all the costs? Or, perhaps, the capital call is specifically for the LP investors to repay their $11M interest free loan? Thought?

They mentioned that the total loan to value was somewhere around 90%+ with the current proposal of debt and preferred equity which means likely 100% LTV, or more, without the capital call. Very unlikely that you would find a preferred equity partner willing to take on that high of an LTV, ie. too much risk. At 100% LTV, there is no benefit to having a priority position in the capital stack because there is no common equity positioned behind it. The capital called equity, or common equity, is the cushion that makes preferred equity more secure so that if values decline further, they can still recoup their investment. But yes, also to repay the $11m in sponsor funds - unlikely a preferred equity partner would be comfortable with that as well when providing rescue capital.

0 Votes

1 Vote

Quote from @Billy Jalali:

Joe Fairless was the guest on The Real Wealth Show podcast which came out today (4/26). He referred rate caps being an issue in today’s market a number of time. Towards the end he talked about having loans come due at inopportune times. “Fortunately we aren’t in any of those positions, but I know of people that have gone through that and they will get pref equity or do a capital call, or both” … kinda sounded like the “asking for a friend”

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I received the same email.

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Yes, I got the same message and also watched the video. While I understand the reasoning behind this, it’s unsettling as they are pausing Class A and I invested their thinking in exchange for no upside I would get more reliable returns. It seems the next couple of years are going to be rough for most syndications. I also noticed they said they will likely hold the 2021 deals for the full 7 years (vs 3-5) so we are looking at no distributions until a potential Capital event in 2028. Is that your take as well?

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Dallas, Texas

@Scott Mac- thanks!

1 Vote

@Aigo Pyles- thanks!

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Thank you to @Account Closed You have given me some huge tips now to review with my PM. So helpful!
Lisa

1 Vote

All Forum Posts by: Lisa Jones

Lisa Jones has started 7 posts and replied 38 times.

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital: Additional 20% capital call

Post: Ashcroft capital - Paused Distributions

Post: Replacing a front door to a building in rough neighborhood

Post: Replacing a front door to a building in rough neighborhood

Post: Replacing a front door to a building in rough neighborhood