REAL ESTATE TECHNOLOGY
Ascot Corp. | May 09, 2022
Ascot Corp. has formed the first private fund through a joint venture with global institutional investors to invest in MF residential, senior living facilities, and student housing in the Tokyo metropolitan area.
Main Investment Properties of the Fund
"ASTILE" is MF residential brand winning the Good Design Award twice last year, and "FARE" is the brand winning the Award seven times for the five consecutive years.
*The Good Design Award is the only comprehensive design evaluation and recommendation system in Japan that covers a wide range of fields from industrial products to business models and event activities.
Overview of the Fund and Strategy
The investment targets of the Fund are MF residential, senior living facilities, and student housing, and their locations are limited to the Tokyo metropolitan area where are expected to provide stable cash flows with little impact from the Covid-19 pandemic and high liquidity on exit, and consequently stable investment results. Furthermore, the investment risks can be identified within the limited scope and in a quantitative manner due to the predefined properties.
The portfolio of the Fund No. 1 comprises of 9 properties, mainly MF residential developed by Ascot (including ASTILE Harajuku, and ASTILE Nishi-Shinjuku II etc.). In the near future, Ascot plans to expand the scope of its fund in collaboration with global institutional investors by acquiring MF residential, senior living facilities, and student housings from external developers and funds, in addition to properties developed by Ascot. Ascot manages these properties as the asset manager of the Fund.
The Growth Strategy of Real Estate Fund Business Department
The Real Estate Fund Business Department, established in 2021, is a new business unit of Ascot that leverages the company's design and quality property development capabilities cultivated over the past 20 years since Ascot's founding in 1999, as well as its domestic and international network. As one of the key pillars of our mid-term growth strategy, we aim to further expand our business by forming joint venture funds with domestic and foreign investors and new private funds, as well as by entering the REIT and other businesses.
In addition to MF residential and offices, which are our strengths, we will target a wide range of asset classes, including logistics, hotels, senior housing, data centers, etc. Furthermore, we are considering entering some asset classes from the development stage.
The Fund Business Department will contribute to the growth of the real estate investment market by continuously providing optimal solutions and quality investment opportunities to a wide range of investors while expanding total assets under management.
Under the circumstances of limited investment opportunities under the low interest rate policy and globalization trend of investment, there has been a shift in allocations from traditional assets such as listed stocks and bonds to alternative investments, with real estate investment in particular gaining prominence worldwide over the past few years.
As the global asset allocation strategy, a certain percentage has been shifted to Asia, and, in comparison to other Asian countries, investment in Japanese real estate has been allocated to a significant degree in terms of core investment. The primary factor is that Japan's low interest rate policy has ensured a relatively large yield gap. Secondly, Japan, centered on Tokyo, has a considerable market size which provides high liquidity on exit. In addition, the infrastructure for investment, such as legal, accounting, and taxation is very stable. Therefore, stable returns are expected to be secured. Consequently, the investment needs and flow of funds from global investors, especially institutional investors, to Japanese real estate have continued even with the COVID-19 pandemic, and the recent depreciation of Japanese yen has also attracted investors' attention to Japanese real estate.
The asset classes receiving great attention are logistics and MF residential. Since Ascot has advantage in longstanding residential development business, the first fund focused on residential properties.
Comments by Takeshi Nakabayashi, President of Ping An Japan Investment Co, Ltd.
Ascot Corp. is the first real estate company in Japan invested by Ping An Group. We are fascinated by Ascot's excellent development track record backed by its ability to plan and deliver high value-added residential and office properties. We have high expectations for the growth of Ascot's new global business, including the real estate fund management business just launched, the development of logistics facilities, and integrated services from real estate brokerage to property management for global investors.
About Ascot Corp.
Ascot is a global comprehensive real estate service provider targeting Tokyo metropolitan area. The business includes the development of the MF residential and logistics, fund management, real estate brokerage for global investors, and property management leveraged by its design and high-quality property development capabilities as well as its domestic and international network. Its design and development capabilities cultivated over the past 20 years are highly recognized, as the track record of winning the Good Design Award 14 times in total shows. Through Digital Transformation, Ascot aims to provide quality real estate services in line with global standards by enhancing customer contact and creating new revenue models.
REAL ESTATE INVESTMENT
ACRE | June 29, 2022
ACRE, a global real estate private equity firm, announced it has finalized a $43.5 million bridge loan with Peak Capital Partners (“Peak Capital”), to support the luxury multifamily apartment community ‘Connect at First Creek’ in Denver, Colorado.
Issued through ACRE’s latest debt fund “ACRE Credit I”, the loan will support Peak Capital’s purchase of the 150-unit community. Executed in May, the 3-year agreement includes options for two single-year extensions.
Brian Caudel and Jack Tidrick at KeyBank Real Estate Capital served as brokers for the deal.
Denver has continued to add huge numbers of both jobs and residents over recent years, making it one of the country’s fastest-growing metro areas and creating a critical need for high-quality rental housing. Connect at First Creek has already enjoyed impressive success in helping to satisfy that robust demand, and we’re proud to play a role in supporting Peak Capital’s purchase of this first-class property.”
Daniel Jacobs, Managing Partner at ACRE
The agreement for Connect at First Creek was one of four loans, totaling approximately $169 million, issued via ‘ACRE Credit I’ in May alone. Other loans finalized during the month were issued in support of multifamily developments in Nashville, Tennessee; Fort Worth, Texas; and Fredericksburg, Virginia.
The loan also represents the third issued to Peak Capital since ACRE Credit 1’s launch in August 2020, following two transactions for properties in the Atlanta metropolitan area.
To date, the fund has raised $509 million of equity and has committed to provide more than $2 billion in whole loans across 52 transactions to support the acquisition, lease-up, redevelopment and recapitalization of multifamily assets in growing secondary markets across the U.S.
“Our lending platform has been able to provide financing for a fast-expanding list of apartment developments across a wide variety of markets, as we continue to form and solidify partnerships with industry leaders like Peak Capital Partners,” said Jacobs. “May marked yet another productive month for ‘ACRE Credit I’, and we look forward to continuing to support other companies and the country’s rental housing sector at-large, as it experiences nearly unprecedented growth.”
Located at 17900 East 56th Avenue, Connect at First Creek was built and delivered by Massimino Development. Since opening in 2020, the community has enjoyed significant lease-up success, as it is currently 96 percent leased.
The development’s 150 luxury units feature a wide range of amenities, with in-unit features and finishes including stainless steel kitchen appliances, quartz countertops, Bluetooth keyless deadbolt locks, wood-style flooring, washer/dryer, walk-in closets, and private balcony/patio space. Community amenities include a resort-style swimming pool, fitness center, clubhouse, open air dining spaces with stainless steel BBQ grills, game room with billiards, coworking and conference spaces, a half-acre dedicated park, and direct access to First Creek Trail.
Connect at First Creek is located just a short distance from Pena Boulevard, Interstate 70, Interstate 225 and the 61st & Pena Light Rail station, offering residents an easy trip to Downtown Denver, Denver International Airport, and Aurora. The property is also adjacent to Rocky Mountain Arsenal National Wildlife Refuge, a 15,988-acre wildlife sanctuary.
ACRE is a vertically integrated private equity firm specializing in commercial real estate through active investments in both direct equity and debt capital markets as well as special situation opportunities. ACRE manages a global portfolio in excess of $3.1 billion concentrated in U.S. multifamily with holdings in the United Kingdom and Southeast Asia through separate verticals. ACRE has offices in Atlanta, New York, and Singapore.
REAL ESTATE INVESTMENT
DJE Texas Management Group | June 14, 2022
DJE Texas Management Group (DJE), a vertically integrated real estate investment and management company based in San Antonio, has closed on The DJE North Portfolio.
The North Portfolio contains 600 apartment units throughout three apartment communities in North Central San Antonio. The properties are located at
12221 Blanco Road
7302 University Row
8631 Fairhaven Street
The three properties are conveniently located within 15 minutes of each other and are situated ideally amongst DJE's other multifamily properties in the same submarket. DJE Properties, will manage the asset and execute a $5.2M value add business plan that includes a rebrand, property renovations, and operational improvements. Renovations will include the addition of washer/dryer units, amenity upgrades in all units, exterior community building and swimming pool upgrades.
This multi-property renovation project will not only enhance the communities in which they are located, but it will also help to meet the city's growing need for quality housing."
Devin Elder, Founder, and CEO of DJE Texas Management Group
The majority of property improvements are expected to be completed by the end of 2023. To date, the organization has invested in over 5,000 apartment units across 17 multifamily real estate assets. and continues to expand its portfolio. DJE Texas Management Group holds firm to its core values and strives to create passive investment strategies where everyone involved wins.
About Devin Elder and DJE Texas Management Group
Devin Elder is Founder & CEO of DJE Texas Management Group, a vertically integrated multifamily investment firm based in San Antonio, Texas. Since 2012, the firm has completed hundreds of successful investment projects including many full-cycle multifamily investments. Devin has led his team in the renovation projects that have improved over 5,000 multifamily units. He is a helicopter pilot, a podcast host, and the owner of a real estate consulting firm, and he spearheads the DJE Foundation supporting disadvantaged children in Texas and the Philippines.