Mid Month Update-August 15,2016

We are thrilled to announce that Forrest has been invited to speak at the iGlobal Forum in Los Angeles on September 14 & 15. He will be on a panel discussing "Next Generation Fundraising Strategies and Partnerships”. They will touch on the importance of finding the right partner, finding the right capital and enough of it for a ground-up development or a new acquisition, the challenges, benefits, and compliance requirements for online fundraising and understanding different types of crowdfunding, and potential opportunities on a per-project basis.
 
Please use the link provided to explore the agenda for the Forum and see other speakers that will be joining him. iGlobal Forum September 2016
 
Another month has flown by as we continue to pursue new opportunities and manage our current projects. On to the details:
 
Funds:
 
Altus Multi Tenant Income Fund 
• Villaggio (33 units, Sacramento) –100% occupied. 
o After the incredible response to fill up the minimal vacancies last month we have sent out the next round of rent increases. Rents at this property are up 12% in the last 12 months. 
• Shasta View (51 units, Redding) - 96% occupied.
o Work on expanding the parking lot began this week, this was the number one request from tenants for a property improvement and we are pleased to accommodate. 
o We have preliminary approval to refinance the property which will drop the interest rate and extend the fixed rate portion of the loan substantially. 
• Cedar Hills (124 units, Oklahoma City) – 98% occupied. 
o We are continuing to push lease renewals at this property as occupancy stays stable. 
 
 
Single Entity Investments:
 
 AE Rockwell
(304 units, Oklahoma City) 
 
• July was another great month at Rockwell. The leasing team beat their goal of 35 new leases with an incredible 41 new leases signed. We are well ahead of our planned releasing schedule. 
• The construction team continues to turn over units to keep up with the increase in leasing.  
• Due to the increase in traffic and interest at the property we are going to push rents on our one bedroom units $15/month and see what kind of response the potential tenants have.
• Our grand re-opening/name changing party will be held this coming Tuesday, August 16th at the property. We are very excited to have the Oklahoma City Chamber of Commerce involved with a ribbon cutting ceremony. We will have door prizes, snacks, popcorn and snow cones for the public, tenants and crews during the afternoon for a celebration. We will include photos next month from the event. 
 
AE Sunset 
(98 units, Edmond OK)
 
• While construction got off to a quick start we had to spend a few weeks waiting for the new windows to arrive. Since their delivery on site tremendous progress has been made. The front four building now have new windows and paint. 
• The HVAC units are being converted from wall units to central heat and air. The first few units are happily experiencing the benefits of central AC. 
• Our plan to begin leases on August 1st was pushed back while waiting on the exterior work to progress. We found that with Rockwell waiting until the initial construction mess was cleaned up and progress could be seen greatly improved our ability to lease units. 
 
Rosewood Garden Apartments 
(33 units, Sacramento CA) 
 
• 94% occupied. We have two vacant units and both will be fixed up to match the other units that have been upgraded. 
• We officially listed Rosewood at the beginning on August. After finishing the window replacement, exterior paint and general cleanup of the property we are looking forward to seeing potential buyers’ feedback. There have been multiple tours of the property and we look forward to receiving our first offer. 
 
 
AE Bodega 
(11 units, Petaluma) 
 
• We are 100% occupied at this property. A subdivision map overlaying the existing units is in process. 
 
 
AE Commerce
(20,000 SF Commercial Space, Rohnert Park)
 
• The property remains on the market. We have some continued interest from possible buyers but have yet to secure an offer.
 
AE Three -1500 Farmers Lane
(17,400 SF Commercial Space, Santa Rosa)
 
• We are still in negotiations with a potential tenant. We look forward to securing an LOI soon.  
 
 
Opportunity Knocks:
 
Sonoma:
 
• 405 5th Street, West, Sonoma, CA (7 townhomes, Sonoma) – We are officially on the market! See the link below to explore the different floor plans and availability. We have received multiple offers within days of listing. 
o Construction continues to move forward with second level framing close to completion. The project is still on target to be complete by mid-November. 
o Check out the listing here: http://www.405fifthstreetwesthomes.com/
 
Modesto:
 
Lamplighter Apartments 
(42 Units, Modesto CA)
 
• We closed on this complex July 18th and brought in a new management company immediately. 
• Renovations will begin in the next two weeks; the improvements will include:
o Replacing all windows to dual pane white vinyl windows
o Repaving and striping the parking lot
o Fresh trim and door paint
o New signage throughout the complex
o Unit upgrades with new flooring, fresh paint and satin nickel hardware throughout
 
 
On the Horizon:
 
• The 80 unit apartment complex in Little Rock Arkansas is still moving forward. We have completed our due diligence and are working towards finalizing financing. We expect to close this property at the end of September. This is a structured program deal with a single investor. 
• We have a 194 unit complex in Oklahoma City in contract. This deal is comprised of two properties that are run out of one management office. We are very excited about this deal as it is in an excellent location near the affluent suburb of Nichols Hills, OK. The property is stabilized at 94% occupancy and with minimal improvements and streamlined management we expect this deal to produces steady cash flow. This is also likely to be a structured program with a single investor. 
• We are in contract on a 293-unit complex in Wichita, Kansas. This is a unique complex that our team is very excited about. It boasts 5 pools, a stocked lake and large entertainment club house. The complex is a 55 and over community with a very strong tenant base. 
• Our broker relationships continue to bring us deals to analyze; we are currently looking at properties in Texas, Tulsa, Oklahoma City, Santa Fe, NM, and Northern CA. 
 
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