July 15, 2015

Summer is in full swing here at Altus, vacations and celebrations have been filling the calendar but there is still a steady flow of projects and opportunities that are keeping us busy. I’ll make it short and sweet this month to get you back out in the summer sun!

Funds:

Altus Hybrid Growth Fund

  • 5 Palm Ave in Healdsburg is on the market, see photos here http://www.zillow.com/homedetails/5-Palm-Ave-Healdsburg-CA-95448/1574482.... It has been on the market for three weeks, we are waiting on the ideal buyer for this size lot and property location.
  • In Sacramento, La Riviera is on the market. We feel we are priced well and are being patient in waiting for an offer.
  • Mid way through renovation on a 2 bed 1.5 bath flip in Sacramento we received an all cash offer for the property creating a profitable opportunity for us and thus we accepted the offer.
  • The four-plex mentioned last month closed this week at close to double the price at which we purchased it a few years ago and will improve cash flow for the fund.
  • Occupancy remains stable at close to 100%. 

Altus Multi Tenant Income Fund

  •  Cedar Hills, the apartment recently purchased in Oklahoma is up and going strong. When we were there in early July there was only 5 vacancies out of the 124 units. We are working in improving our unit turn efficiency and starting to upgrade units so that we can increase the rate of the rent increases. The Villaggio property in Sacramento is continuing to hold occupancy at 100%. We have been able to increase rent on turned units due to the market rents in Sacramento continuing to rise.
  • The Shasta View complex in Redding has seen typical summer time turnover however with the strong student population in the area pre-leasing the units has been quick. Currently the complex is at 94% occupancy.  
  • We have an LOI out on a 150 unit complex in El Paso, TX. This deal is exciting for us due to the appearance that the market in El Paso is at an inflection point moving from a flat rental market to an increasing rental market, meaning there should be good pricing momentum over the next few years.  We likely won’t know for a couple weeks whether or not our offer is accepted.
  • Another opportunity in Oklahoma City has been presented to us that we are beginning the initial negotiation process on. This 304 unit class B complex has the potential for huge upside in rent after renovations are completed. 

AE Commerce

  • Showings have increased for the vacant space in the back building.
  • Many items for the lot split have been approved, we are working towards final approval in mid-August.

AE One

  • Renovations are close to complete at a 4 bed 2 bath property that will go on the market in the immediately.
  • We have multiple offers on 3 bed 1 bath property in Rio Linda.

Opportunity Knocks:

Sonoma/Napa County:

  • Sonoma, CA – With approved plans in hand, demolition has started on a complete remodel and addition of 410 SF to a small home in Boyes Hot Springs. The project has an anticipated completion date of 11/25/2015.
  • Sonoma, CA – Our 7 unit townhome project is moving forward. Minor site work is beginning to prep the lot for construction. We continue to wait for final plans from the architect which are expected in the next several weeks.
  • Albany, OR – Improvements to a 3 bed 1 bath property will begin next week. With minor renovations we expect this to be a quick project and the opportunity to dive into a new market.
  • Graton, CA 3 Units - This property will be going on the market this Friday, July 17th. There is a high demand for rental properties in Graton and we have had a flurry of investor interest in the property already even though it isn’t yet listed.

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 have a vacant unit at the end of this month and will begin rehab immediately. 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.  This is about the best rent to purchase price ratio that can be found on individual units in Northern California. Contact our office at (707) 932-5887 if you have any interest.  These are a great option for a 1031 exchange. 

Other:

  • The decision has been made to sell our last unit of new construction in Windsor. This home will go on the market Friday July 17th.
  • As mentioned last month, we are currently on the market in Sonoma with our largest flip to date. See a video of the home here: https://vimeo.com/132095450.
  • 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. 
  • The Altus office is moving along with all electrical and lighting done. Drywall begins at the end of this week, we continue to look forward to moving in by early fall.
  • Our multifamily deal flow is ever increasing through our Broker relationships. Deals in Sacramento, Reno, and Norman, OK have been presented and are being reviewed.

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,

 

Ali Negus