Mid Month Update August 15, 2015
A lot has happened at Altus in the last month. Not only has deal flow increased and multiple projects have gone into contract, our controller, Jennifer Pickle welcomed a baby girl to her family! Maddison Ellie Pickle, welcome to the Altus family!
Now on to business…
Altus Hybrid Growth Fund
- Occupancy remains stable at close to 100% for our rental units.
- While the sale price is marginally lower than expected we are in contract on 5 Palm Ave in Healdsburg.
- In Sacramento, La Riviera is in contract as well. Patience has paid off this month!
- The 2 bed 1.5 bath Sacramento home mentioned last month fell out of contract so renovations have continued with a plan to be on the market by October.
Altus Multi Tenant Income Fund
- We are pleased to have had our offer on the 304 unit complex in Oklahoma City accepted. Due diligence has begun for this B- property with an expected close date in October.
- The Villagio property in Sacramento is continuing to hold occupancy at 100%.
- Shasta View has seen typical summer turn over but with the new school year starting we have had no trouble filling vacancies. The property is currently at 95% occupancy with 98% projected for next month due to pre-leased units.
- Our largest complex to date, Cedar Hills in Oklahoma went through a large change in the last two weeks. The onsite manager decided to retire and move closer to her children and grandchildren, so our new onsite manager started last week and is excited to take the property to a new level. Two units are being upgraded with higher end finishes to test the market rent threshold.
- A few months ago we were negotiating on 4 multi-family properties in the Sacramento area. We backed out of the contract when we were unable to renegotiate the purchase due to substantial repair and maintenance issues we found. We continued to check in on the properties and last week one of the four came back to us at roughly the same price we were willing to pay for the property when it was only of the four properties as part of the portfolio. We are now in contract on this 33 unit property with an expected close date of October 15th.
- After fresh paint and a thorough cleaning we have leased the small office in the back building.
- The lot split is still waiting for final approval.
- We put two additional properties in contract to sell this past month. We now are down to our last property to sell which is a single family home in Sacramento that has a tenant with a long term lease.
- Central Ave, Sonoma – with a 410 SF addition this project is moving along great. Framing is almost complete and the roof trusses will be delivered and installed by the end of the month.
- 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 our 3 bedrooms flip are going well. A representative from our office will visit the property later in the week to confirm the progress.
- Graton, CA 3 Units – We received a full price offer after 1 day on the market. Currently we are in contract and pleased with the progress of the sale.
- At our 10 unit complex in Sacramento the rents have now been increased for every tenant. Two more units were upgraded and pending applications are already in hand with the property manager.
- Carmichael, CA – Two vacant units are on the market currently. One recently vacant unit is about to begin rehab and will immediately be available for sale. 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.
- Our new construction in Windsor is on the market. While we have not received any offer a lot of great feedback has been received.
- We closed on our largest flip to date in Sonoma this past week.
- 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 still moving along great in the new office building. Texture is complete and paint is going to begin this week!
- We signed a predevelopment contract for the design build of a high end custom home in Sonoma CA. We are excited to see this division of our business grow.
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