Mid Month Update-September 15, 2016

The past week has been exciting at Altus. Four members of the team spent two days doing due diligence in Wichita, KS at the 293 unit complex we have in contract, Forrest spoke at the 15th annual iGlobal Private Equity Summit forum in Los Angeles and we have put in two LOI’s on potential opportunities. Business is good.

 

Funds:

Altus Multi Tenant Income Fund

  • Villaggio (33 units, Sacramento) –100% occupied.
  • Shasta View (51 units, Redding) - 96% occupied.
    • Occupancy has remained the same over the last month with only two move outs planned for late September.
    • We are in discussions with the management to begin raising rents next month.
    • Our refinance is moving forward with a 41% increase in appraised value in less than two years of ownership.
  • Cedar Hills (124 units, Oklahoma City) – 96% occupied.
  • As we continue to monitor expenses at this property occupancy has stabilized under the diligent leasing work of our onsite manager.

 

Single Entity Investments:

 AE Rockwell
(304 units, Oklahoma City)

  • Leased slowed in August, which was expected due to school starting and the summer coming to a close.
  • Our grand re-opening/name changing party was a success! There was an excellent turnout of guests that included brokers, service providers and many Chamber members. The office staff was honored at a dinner for their hard work and dedication at the property later that evening.  We could not be more pleased with the renovation.

AE Sunset
(98 units, Edmond OK)

  • The leasing office has officially opened onsite and updated marketing is in the works. We are getting great feedback on the units from prospective tenants and are hopeful that applications will start to roll in.
  • The exterior of the complex has changed significantly with the addition of a pergola at the entry, complete exterior paint, landscape improvements and completion of the pool upgrade.
     

Rosewood Garden Apartments
(33 units, Sacramento CA)

  • 97% occupied. We have one vacant unit that is in process of being upgraded.  
  • We are in contract on this property to sell, the buyer is currently conducting their due diligence.  

 

AE Bodega
(11 Units)

  • We are 100% occupied at this property.
  • The PUD application was resubmitted at the beginning of this month.

 

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 have an LOI in hand from the prospective tenant mentioned last month. Negotiations are ongoing in converting the LOI into a full lease. 

 

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.
  • Since hitting the market last month we have put 3 of the 7 units in contract.
  • The site has started to show significant progress with framing complete and interior work beginning.  
  • Check out the listing here: http://www.405fifthstreetwesthomes.com/

Modesto:

Lamplighter Apartments
(42 Units, Modesto CA)

  • Renovations have begun on 4 units. All 4 of which are preleased and hitting the projected rent rates from our proforma.
  • After increasing rents on five units with no move outs we have chosen to give the entire complex a blanket rent increase. We are expecting this to cause some turnover, which is acceptable so those units can be renovated and re-leased at market rent rates.
  • 20% of the windows have been upgraded to new dual pane white vinyl windows, with the remainder expected to be complete by the first week in October.

On the Horizon:

  • The 80 unit apartment complex in Little Rock Arkansas closes at the end of this month. This is a structured program deal with a single investor. Our plan is to begin the minimal exterior repairs immediately, freshen up the office and market the ownership change.
  • We have a 194 unit complex in Oklahoma City in contract. This deal is comprised of two properties that share 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 produce steady cash flow. This is also a structured program with a single investor.
  • We are in contract on a 293-unit complex in Wichita, Kansas. Four members of our team were onsite this week completing our due diligence.  
  • Our broker relationships continue to bring us deals to analyze; we are currently looking at properties in Texas, Tulsa, Oklahoma City, Santa Fe,, Kansas City, and Northern CA.

 

If you have any interest in discussing any of the above opportunities in greater detail, please 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