May 15, 2016

Altus is excited to share that we have been invited to speak at the Texas Multifamily Summit in Dallas on May 24th sponsored by CapRate Events, LLC. Forrest will be on a panel discussing Multifamily “Middle Market” & Private Capital Investment Perspective: Is the Plan of These Investors to Maintain Current Growth or Seek Significantly Larger Acquisitions?  

Click this link for more information on the event: http://cre-events.com/txmultifamily/

Funds:

Altus Hybrid Growth Fund

  • There are only 4 more properties in this portfolio before liquidation is complete.
    • One single family home in Sacramento is currently on the market.
    • One single family home in Sacramento is scheduled to close Monday 5/16.
    • One condo in Rohnert Park will be on the market by 5/20.
    • The property in Guerneville is in contract with an expected close date of 5/19.
  • Many of the Hybrid investors chose to roll their investment forward into the purchase of the Sunset Ridge Apartments, thereby deferring taxes on their capital gains.

Altus Multi Tenant Income Fund

  • The Villaggio property in Sacramento remains 100% occupied. We were able to raise rents $50/month on 24 of the 33 units with very little turnover. Only two units chose to move out due to the rent increase and they were re-leased within days of going vacant.
  • Shasta View in Redding is currently 100% occupied. Within the next 30 days we have 6 units moving out. 2 of the 6 units are preleased. With consistent marketing and a fantastic onsite manager, we don’t foresee any issues leasing the remaining 4 units quickly.
  • Cedar Hills in OKC is currently at 90% occupancy. Leasing has been very slow at Cedar Hills over the last four weeks. With our large floor plans and immaculate grounds we feel confident that we can outperform the neighborhood market occupancy rate of 90%.  A new model unit will be complete by May 27th. Professional photographs of the model unit will be used to update our marketing materials and showcase all that these units have to offer.

 AE Rockwell

  • Amazing progress has been made at Rockwell in the last month. Exterior work continues with 7 of 19 buildings now complete with siding repair, new windows, new doors and fresh paint.
  • The laundry facility was recently renovated with new computerized washer and dryers, new flooring, and fresh paint. The existing tenants are thrilled for this to be complete.
  • Leasing has picked up with 9 leases last week and 10 the week before. The office staff has been working extremely hard at keeping the marketing up to date and getting leads in the door.

AE Sunset

  • We officially closed on Sunset Ridge Apartments in Edmond, OK on May 12th.
  • This is a 98-unit complex in a highly desirable neighborhood of Oklahoma.
  • Planned exterior upgrades include new windows, stairwell replacements, siding repair and full exterior paint. A complete renovation to the pool area and new landscaping will complete the curb appeal needed to attract our desired tenant base.
  • Planned interior upgrades include new cabinets, trim, doors, vinyl plank flooring, carpet and fresh paint throughout.

AE Commerce

  • The property remains on the market.

Opportunity Knocks:

Sonoma County:

  • 405 5th Street, West, Sonoma, CA – We are starting to gain momentum on this project. Building pads are in and foundation work is scheduled to start this week. Estimated completion date is end of October 2016. Premarketing will begin shortly and presales should commence within the next 30 – 45 days.
  • 998 Bodega Ave., Petaluma, CA – 10 of the 11 units are rented with the new rent roll considerably outperforming proforma. A neighborhood community meeting was held as the first step in our process of doing a subdivision overlay on top of the existing residences and received excellent feedback. With the positive neighborhood feedback we are now in the process of assembling the tentative map package that will be submitted to the city for initial review of the planned development.
  • 1500 Farmers Lane, Santa Rosa – We submitted for design review approval for the exterior and ADA upgrades and we are continuing negotiations with a strong “A” tenant. It is our hope we will have a new lease in place prior to the existing tenant moving out.

Sacramento Area:

  • Rosewood Gardens (33 units in Sacramento) – Currently 100% occupied. New rents are higher than in our original proforma. We continue to work with the building department to obtain approval to complete the upgrade of all the windows in the complex, with a portion of the cost being offset by a rebate program.

On the Horizon:

  • After our thorough due diligence of the 32 homes in Oklahoma we chose to pass on this opportunity. Rental rates advertised by the sellers were higher than the market is achieving for single family homes. Additionally, the operating costs of the properties were higher than marketed.
  • Our network continues to bring us deal to review, with LOI’s out on properties in Texas, Wichita, Tulsa, Modesto and Redding.

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