Mid Month Update October 15, 2015

HUGE things are happening at Altus!  After some nail-biting moments, we have successfully negotiated a significant price reduction and are moving forward on the purchase of Rockwell Plaza Apartments in Oklahoma City.  With an $11.75M purchase price this will be Altus’ largest multi-family acquisition to date.  The complex has 304 units which we will be repositioning through extensive exterior and interior upgrades.  There is also significant upside in rents adding to our equity creation strategy.  We anticipate closing this transaction in mid-December. 

 

If you or someone you know has interest in participating in this deal, please contact our office at (707) 932-5887.  We will be sending out an email blast with more details next week. 

 

Funds:

 

Altus Hybrid Growth Fund

 

  • Occupancy remains stable at close to 100% for our rental units.   We do have one house coming vacant at the end of the month at which time we plan to list the property for sale.
  • Additionally, we moved a tenant out of a second house. Minor repairs will begin shortly and the property will be placed for sale.
  • Renovations continue on the 2 bed 1.5 bath Sacramento home with a plan to be on the market by late October.

 

Altus Multi Tenant Income Fund

 

  • The Villaggio property in Sacramento had 3 turnovers this month.  One has been rented and we anticipate the remaining two units will be leased up quickly at increased rents. 
  • Shasta View in Redding saw typical summer turnover but is currently 100% occupied.  We have an “End of Summer” tenant BBQ scheduled for next week.
  • Cedar Hills in OKC is currently at 94% occupancy.  During the last month we had 26 lease renewals which is exceptional and the onsite management team continues to make improvements to the overall operations of the complex.

 

AE Commerce

 

  • We continue to market the remaining available space in the back building.
  • The lot split is still waiting for final approval.

 

AE One

 

  • We closed on the sale of one property during the month which leaves one remaining property to sell in the portfolio - a single family home in Sacramento that has a tenant with a long term lease. This property is in contract and expected to close within the next month. At that point this fund will close with a highly successful exit for the investors.

 

Opportunity Knocks:

 

Sonoma/Napa County:

 

  • Petaluma, CA - We are in contract to purchase 11 units (5 SFRs and 3 duplexes) on one lot within the city limits.  We are nearing the end of our due diligence phase and are encouraged by the possibility of subdividing the property while collecting nice cash flow from the rents.
  • Central Ave, Sonoma – This project is moving along nicely.  Roofing is in process, and rough plumbing and electrical have begun.
  • Windsor, CA – Our price drop was successful on our new construction project.  We received multiple offers and are currently in contract. 
  • Sonoma, CA – Our 7 unit townhome project is moving forward. Demo of the existing dwelling has been completed and initial site work is under way.  Plans have been received from the architect and are currently in plan check with the City of Sonoma.
  • Albany, OR – This project is complete and is being listed for sale this week. 
  • Graton, CA 3 Units – We have had two buyers back out, however there continues to be strong investor interest in this property and we expect to have an offer in hand shortly. 

 

Sacramento Area:

 

  • All units at our 10 unit complex in Sacramento have been upgraded and re-tenanted.  The property is currently listed on the market for resale at a 41% increase in price over what we paid for it.
  • We are scheduled to close on October 22nd on a 33 unit apartment building. This project has several down units that will be upgraded and placed for rent. It is our hope to have the unit fully stabilized within 6 months.
  • Carmichael, CA – We closed on the sale of one condo unit last week, leaving us with one vacant unit and two occupied units.  The remaining 3 units are available with a bulk discount with a purchase of $324K 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:

 

  • 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. 
  • Construction is nearing completion at our new office building. Street improvements have been completed and we can move forward with landscaping out front.  Security has been installed, and with a little more paint and some carpet, we will be ready to move in all of our new furniture.

 

 

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