Mid Month Update March 15, 2016
With just over $15M in deals under contract, time is at a premium here at Altus these days. So let’s jump right in:
Altus Hybrid Growth Fund
- The liquidation of this portfolio continues.
- We closed on the sale of a home in Sacramento.
- Two condos in Sonoma County and one home in Sacramento are in contract.
- Two properties in Sonoma County are undergoing renovations and are expected to be on the market by the end of the month.
- An additional property in Citrus Heights has been approved for a lot split and is contract for resale.
- Once tenants vacate the remaining two properties in the portfolio they will be immediately prepared for resale.
- We have identified a replacement property for those fund participants wishing to do a tax-deferred exchange of their investment.
Altus Multi Tenant Income Fund
- The Villaggio property in Sacramento remains 100% occupied.
- Shasta View in Redding currently has 2 vacancies (94% occupancy), one of which is due to flooding caused by heavy rainfall. A new onsite manager is doing a great job with lease renewals. We have 4 applications in hand for the 2 vacancies.
- Cedar Hills in OKC is currently at 92% occupancy with 6 vacants. Our new property manager is continuing to work to keep the property stabilized.
- Rockwell Plaza exterior improvements continue with paint and windows moving along as planned and ahead of budget.
- Completed unit interiors look great with new kitchen cabinets, doors, trim, paint, flooring etc.
- Marketing has begun and we had our first signed lease for a newly renovated unit this week.
- An open house is planned for later in the month to show off the models and drive new leasing activity.
- We continue to market the remaining available space in the back building.
- The front building was placed on the market for sale this past month and we are hopeful of finding an owner user to purchase the building due to the excellent freeway visibility.
- 405 5th Street, West, Sonoma, CA – Our 7 unit townhome project is moving forward. We are still waiting on permits but hope to begin site improvement work by the end of the month.
- 998 Bodega Ave., Petaluma, CA –6 of 11 units are currently vacant and being turned for re-leasing and one additional unit will go vacant the first of April. Our property manager has several pre-screened applicants lined up and anticipates filling at least half of the units by the end of March. With their close proximity to downtown Petaluma these will lease quickly and thanks to strong market demand, for higher rents than originally expected. We will be holding a community meeting to review the proposed PUD/subdivision in the near future.
- 1500 Farmers Lane, Santa Rosa – We have a prospective new tenant seriously evaluating the property while at the same time we received an unsolicited purchase offer at a little over twice our original offer.
- Rosewood Gardens (33 units in Sacramento) – Currently 100% occupied. New windows are being installed throughout all units, the cost of which will be offset by a rebate program.
- Empress Apartments – Sacramento – 100% occupied and we just accepted an all cash, quick close offer.
- Carmichael, CA Condos– We are scheduled to close on the last remaining unit early next week.
The Mid South:
- We are moving forward with the purchase of the 98 unit complex in Edmond, OK. This will be a replacement property for those doing a 1031 out of Altus Hybrid Growth Fund. We will be taking additional equity participants in this deal, so if you are interested in learning more, please contact our office.
- A block of 32 homes in Norman/OKC, Oklahoma are under contract and will be working through our due diligence process in the coming weeks.
- Several LOIs are outstanding, the most recent for an off market group of 4 apartment complexes in the Dallas area.
- 1539 Lincoln Street, Albany, OR – Sold earlier this month.
- We are in contract on 48 condo units in Fernley, NV in contract. Fernley is just outside Reno and next to the new industrial park that is being built which when complete will be the largest industrial park in the world and already houses the new Tessla battery plant. We are investigating the viability of selling the 48 units off to individual buyers.
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