June 15, 2015

We are just days away from unveiling our largest and most expensive single family renovation in Altus’ history and we would like to invite you and a guest to a private viewing.  Stop by for beverages, bocce, and to preview a multi-million dollar home on one of the most desirable streets in Sonoma.

1222 Castle Road, Sonoma

Wednesday, June 24th

3 p.m.–7 p.m. 

Please RSVP by Friday, June 19th

(707)932-5887

 

We hope to see you there!

The past month has been a whirlwind of activity around the office, here are some highlights:

Funds:

Altus Hybrid Growth Fund

  • The cosmetic fixer, 4 bed 2 bath house in Sacramento is currently on the market.  The house had had strong showings and we anticipate an offer in the very near future.
  • The property at Palm Avenue in Healdsburg is being staged this week and will be on the market Friday, June 19th.  We expect a quick sale as there is very limited inventory at a comparable price point in Healdsburg.
  • Rehab is underway on the 2 bedroom, 1.5 bath flip property in Sacramento. 
  • We are in contract to resell a four-plex from this portfolio which will improve the overall performance of the fund from a cash flow perspective. 
  • Occupancy remains stable at close to 100%. 

Altus Multi Tenant Income Fund

  • The purchase of the Cedar Hills complex in Oklahoma City is scheduled to close today.  We were able to quickly raise the additional equity needed and in fact had to turn away interested parties.  This property is expected to pay out an 8% preferred return from Day 1.  A representative from Altus will be traveling to Oklahoma to kick off the change of ownership with property management and ensure a smooth transition for tenants.
  • The Villaggio property in Sacramento continues to operate in a stable manner and is currently 100% occupied.
  • The Shasta View complex in Redding is also 100% occupied.
  • We are currently negotiating the $4.7M purchase of a complex in Lubbock, TX. The property consists of 106 units.  We are in the very early stages of due diligence but like what we’ve seen thus far.    

AE Commerce

  • Our commercial leasing agent is marketing the vacant space in the back building.
  • The drawings for the recorded parcel map have been submitted for review and we hope to have the official lot split done sometime over the summer.

AE One

  • We closed on the sale of one property and began renovations on the recently vacated home and hope to have it on the market for resale in a few weeks.  After that we will have two remaining properties to liquidate per the original fund strategy.   

Opportunity Knocks:

Sonoma/Napa County:

  • Sonoma, CA – We closed on the sale of the cosmetic rehab flip on Estrella Drive in Sonoma and it was a huge win for Altus - selling for $150K more than originally planned.
  • Graton, CA – 3 Units:
  • We are very close to having the property on the market.  Just a few minor repairs to the back unit and it will be rent ready.  The front, right unit is nearing completion and our current anticipated on market date is the 26th of June.
  • Sonoma, CA – Plans have been submitted for the small home in Boyes Hot Springs and we are awaiting approval so we can begin demolition of nearly all of the existing residence.  The addition of 400 sqft will result in a new, 3 bedroom, 2 bath bungalow in a desirable area for both 2nd homes and permanent residents.
  • Sonoma, Ca – We are working through the details of an agreement with an investor for the 7 unit townhouse project located 5 blocks to the downtown square. The site engineering and utility plans are in process. We expect to be able to have the architect begin on the building plans within 2 weeks, all with the hope that we will be able to get the site improvements completed and foundation poured prior to the start of the rainy season. 

Sacramento Area:

  • Minor renovations continue at the 10 unit apartment complex.  This property will be resold once stabilized. 
  • Carmichael, CA – Two of the four remaining occupied units are currently on the market as investor units.  We will be rehabbing a 3rd unit once vacant.  The remaining four units are also available for a bulk discount with a purchase of $432K with the possibility of a portion of the financing being carried by Altus.  Contact our office at (707) 932-5887 if you have any interest.  These are a great option for a 1031 exchange. 

Other:

  • We were unable to restructure our deal on the $8.3M apartment portfolio of four complexes that we put into contract last month.  Our inspections uncovered several issues on the properties that will be expensive to remedy. The seller was unwilling to meet the terms we needed to make the project fit our criteria.  We have hope that we will have another opportunity to come to terms with the seller after he has had a chance to digest everything we uncovered.
  • Tulsa, OK – We continue to wait patiently for the resolution of the title issue for these two off market apartment complexes so that we can close the transaction. 
  • We completed the sale of the two back units (main house and granny unit) of our infill development project in Windsor.  The second, front home will be finished by the end of the month and we are evaluating whether to sell the home straight away or hold it as a rental. 
  • We closed on the purchase of a small home in Albany, OR.  We will be doing some cosmetic fixes to the property and plan on having it back on the market in 4-6 weeks after commencement of construction. 
  • Construction financing is in place and renovations are in full swing at our new Altus headquarters.  We hope to be in our new offices by early Fall. 
  • We are continuing to evaluate deals in Oklahoma City, Reno and other emerging markets.  Deal flow is increasing as we continue to grow our relationships with brokers and other investors in these markets.

 

If you do not currently receive our Opportunity Knocks emails with specific investment opportunities or if you have any interest in discussing any of the above opportunities in greater detail, please reply to this email or call our office at (707) 932-5887.  We will gladly add you to our distribution list and/or schedule an appointment to discuss your investing needs further.

 

Best,

 

Kristy Brooks