Mid Month Update April 15, 2016
With my recent relocation to Oklahoma to manage Rockwell Plaza not only has my experience in project management grown, so has my knowledge of apartment management and stabilization. I look forward to sharing this with our investors as I take over the Mid-Month update moving forward.
Spring is in the air and with that comes the start of leasing season in the apartment community. With new marketing strategies in place our complexes are filling up fast. Fresh signage and targeted tenant retention are keeping our complexes full.
Altus Hybrid Growth Fund
- The liquidation of this portfolio continues with properties in Sacramento and Rohnert Park to turn that just went vacant.
- Two condos in Sonoma County closed.
- One house is Sacramento closed.
- One condo in Sonoma County is in contract.
- The property in Guerneville that underwent renovations just hit the market. Click below to see photos.
- The property in Citrus Heights has been approved for a lot split and is in contract for sale.
- We have identified a replacement property for those fund participants wishing to do a tax-deferred exchange of their investment and expect to close that purchase in the first half of May.
Altus Multi Tenant Income Fund
- The Villaggio property in Sacramento remains 100% occupied. With a new management company in place we have begun raising rents on the longer term tenants that are below market rate.
- Shasta View in Redding is currently 100% occupied.
- Cedar Hills in OKC is currently at 94% occupancy. Traffic in the leasing office has increased in the last two weeks due to new marketing efforts by the onsite manager with 3 pending applications.
- The exterior work has moved forward dramatically with the office renovation complete, siding repair complete on all 21 buildings, and full windows and paint completed on 6 buildings. Tree and shrub removal has greatly opened up the front entry where concrete is being re-poured and a new gate will be installed.
- Leasing of the renovated units started slowly but being the featured complex on the front page on Apartmentsmagz.com traffic has increased and 5 units were leased in the last week.
- We continue to market the remaining available space in the back building.
- With fresh landscaping installed along the frontage road, we continue to work at 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 has begun. Site work began two weeks ago, sewer is complete with the storm drain work at 90%. We estimate 6 months until completion on these units. The following article outlines the need for more housing on the west side of Sonoma we are excited to be a part of the development of the area.
- 998 Bodega Ave., Petaluma, CA – Rent increases created some significant turnover at this property which was expected at the time of purchase as they were far below market. Currently 5 of 11 units are vacant and our property manager is reviewing applications
- 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.
- Rosewood Gardens (33 units in Sacramento) – Currently 100% occupied. New windows are being installed throughout all units, a portion of the cost of which will be offset by a rebate program.
- Empress Apartments – Sacramento – Schedule to close on the sale of this property this week.
On the Horizon:
- We are moving forward with the purchase of the 98 unit complex in Edmond, OK that is scheduled to close May 9th. 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. Investors will have the opportunity to participate in this opportunity as an “Opportunity Knocks”. Please contact the office for additional information.
- We also have 48 condo units in Fernley, NV in contract.
- Our network continues to bring us deal to review, with offers being made on properties in Tulsa and Northwest Arkansas this week and additional possibilities in Norman, OK and Oklahoma City currently under review.
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.