Ashcroft Capital

The 2 investments I had with them resulted in 100% capital loss for both. Their excuse is market conditions but further research reveals them repeatedly overstating the value of numerous properties and collecting the spread to the tune of $110 million! Just Google: The Ashcroft Valuation Gap: CoStar Data vs. Investor Reports. Despite repeated forced sales rather than using some of that money to prop up their failing assets they had the gall to make capital calls from the LPs, the very people that would suffer the most from any capital loss and I am sure that even with a total loss of a syndication the GPs made out just fine. This is no longer just about incompetence but outright fraud. Each investment was doomed to fail with money lost the moment it was wired over. Lawsuits have already begun but Ashcroft deserve nothing less than a full class action and SEC investigation/fines. Are any lawyers and regulators out there listening? I have little hope for any restitution but hopefully they can be prevented from further swindling people out of their hard earned money and maybe this can be the start of more stringent regulations and provide safeguards against the shady dealings in the world Reg D syndications.

I have been invested in AVAF2 and the fund is poorly managed. I expect a total loss of capital. This is the latest update "the Halston 5 portfolio, of which AVAF2 owns 33%, is now proceeding through a lender-led sales process. No equity recovery is expected for investors, and the Fund is focused on fulfilling lender requirements and maintaining stability throughout the process. With Elliot Gwinnett and Halston Citrus Ridge, the focus remains on preserving cash flow and positioning the assets for longer-term outcomes, which may result in the need for an 8% capital call." I would never invest with them

I invested in two Ashcroft deals. Both are performing significantly below their pro formas and have reduced distributions. The first one had a 6.5% capital call. My opinion is that Ashcroft used a higher risk value add strategy that produced great returns when the market was good and rents were increasing. Their performance took a significant hit when interest rates went up, rents stopped increasing and more multifamily were delivered to the markets they were investing in. I believe they had some deals with 100% investor loss, but not for the two that I am invested in. I don’t think I will invest again with Ashcroft, but I have to accept some of the responsibility for investing in multifamily near its peak in hot markets that are now oversupplied.

I invested expecting disciplined underwriting, but what’s happening now goes beyond “macro conditions.” The scale of supply pressure and operational underperformance suggests these risks were either underestimated or not transparently presented. Current stress at the property level (including lender scrutiny) points to overly optimistic assumptions from the start. Communication is frequent, but largely reactive—focused on external factors rather than clearly addressing what was missed in underwriting and execution. Bottom line: This feels less like bad luck and more like risk that wasn’t properly disclosed. I would not invest again.