DALLAS, Oct. 12, 2022 /PRNewswire/ — Ashland Greene Capital, a Dallas-based multifamily real estate investment firm, announced its Parkwyn Townhomes exit today with twice the projected average annual return (AAR) within a shorter hold period than anticipated (42 months versus projected 60 months).
Notably, Parkwyn represents one of Ashland Greene’s properties that prompted the firm’s launch of its own property management company – AG Living. Propelled in part by the pandemic and then the Texas freeze, leadership realized it needed to take on direct control of Parkwyn as well as other properties to secure the quality experience it desired for residents and the level of return it desired for investors.
“We knew Parkwyn had tons of potential,” said Shakti C’Ganti, CEO and Founder. “We stepped into the property management role after having to change management companies twice. When we took over Parkwyn, we inherited over $300k in unpaid A/P, lots of deferred maintenance, and 75% occupancy.”
With AG Living at the property management helm, occupancy increased and at exit sits at 99%. Projected AAR was 14.80 percent, and at exit, actual AAR is 30.60 percent, with internal rate of return (IRR) at 23.54 percent, from a projected 12.80 percent.
Investor Relations Vice President Aalok Parikh credits the AG Living team with being a driving force behind the deal’s success.
“We knew we had to act quickly to ensure we stayed true to our commitment to our investors,” Parikh said. “Using our own property management division enables us to better control expenses, and more importantly, the quality of the resident experience. The challenges we faced over the last few years with the pandemic and then the Texas freeze taught us that it’s best to be able to directly control our product, which means we’re better able to manage quality and drive and increase occupancy.”
Ashland Greene now operates a full vertical integration model through multiple divisions: Ashland Greene Capital, Construction and AG Living. According to Parikh, operations benefit greatly from resulting economies of scale, translating into an ability to produce higher returns for investors.
Ashland Greene is a fast-growing multifamily real estate investment firm with a primary focus on the DFW metroplex. It receives an average annual return of approximately 25 percent on their exits where the typical hold period is 2.8 years and averages 95 percent depreciation on Year One investments. In 2022, Ashland Greene plans to return about $90 million to investors.
ABOUT ASHLAND GREENE
Ashland Greene is a vertically integrated real estate company which identifies and repositions undervalued multifamily investments in the Dallas-Fort Worth Metroplex. Our local focus, dedication to trustworthy, long-term relationship building, and commitment to community, enable Ashland Greene to create a unique investment experience which delivers long-term value for its investors, residents, and communities. For more information, visit ashlandgreenecapital.com/.
Past performance is not indicative of comparable future results. Market and economic conditions may change in the future producing materially different results than those shown here. All investments have inherent risks. Targeted returns are based on five-year hold for Class A & B Limited Partner Investment.
SOURCE Ashland Greene Capital
