In May 2023, Ashland Greene Capital, a Dallas-based multifamily investment firm, announced their latest deal in their Ashland Greene Value-Add Fund VI. The assets in question are Hunter's Cove, located between I-20 and I-30 between Dallas and Fort Worth, and Village on the Green, located in the I-635/Tollway area North of the Dallas city center.
The plans for each of the properties, as the fund name would suggest, follow a value-add strategy. Both properties will be renovated for over $10mm, with Ashland Greene projecting great value realization from the project. Shakti C'Ganti, founder and CEO of Ashland Greene, spoke to the strategy:
DFW is a top-ranked market for real estate investing in the country. We're excited to bring current and potential investors another opportunity to invest in multifamily real estate here. Fund VI delivers two off-market properties at significant discounts to previous market value.
We see the potential to deliver up to $34 million in value creation and believe that it's prime time to invest in this sector as we see it as a once-in-a-decade opportunity for wealth creation. Multifamily real estate offers tremendous advantages, including the chance to diversify your portfolio, hedge against inflation, and realize equity appreciation, distributions, and tax benefits through bonus depreciation.
On Hunter's Cove, plans call for renovation of 156 interiors and transformation of the on-site clubhouse into a "lifestyle community hub". They did not mention pickleball, but hopefully that is on the table as well. For Village on the Green, capital improvements will be lighter, with $6mm marked for upscale interior renovations over 91 units.
Ashland Greene will be controlling day to day operations on both properties through their property management company, AG Living. The group also has an in-house construction arm, Ashland Greene Construction. Tyler McWilliams, Ashland Greene COO, spoke to the business model:
Our vertical integration model works efficiently. It's the most effective way for us to maintain tight controls over resource deployment, construction, asset, and property management, and ultimately deliver the highest returns possible to our investors.
These properties, acquired off-market at a discount to their prior transactions, demonstrate that great deals still exist for creative investors who are positioned to benefit. The ability to move swiftly and seek off-market deals will be essential for investors to thrive in this difficult market.