Mid Month Update-November 15, 2016

This past month was a busy one and we are looking forward to a little bit of a slow down through the end of the year. We have one more property in contract to close this year and will be raising investment for that opportunity over the next couple weeks.

Here is what we are currently working on:

Funds:

Altus Multi Tenant Income Fund

  • Villaggio (33 units, Sacramento) - 100% occupied
  • Shasta View (51 units, Redding) - 96% occupied.
    • We locked the interest rate for a refinance of that property today at 4.71% fixed for 12 years and will be closing on that loan before the end of the month.
    • We are preleased at 100% occupancy.

Single Purpose Entity Investments:

Crosswinds and Crosswinds Cove
(194 units, Oklahoma City)

  • This is our most recent acquisition, purchased in partnership with a 1031 investor on October 31st.
  • This complex is two properties that are run out of a single management office.
  • With the complex located on individual parcels, we obtained separate loans with 2 different lenders.
  • Exterior painting, parking lot resurfacing and new signage will update the exterior of the complexes. Work began on this the day after take over.

Normandy Place
(80 units, Little Rock AR)

  • The transition at this property is going well. Tenants are happy to have new management in place and excited to see the planned improvements.
  • Interior upgrades are underway on 8 units. We are waiting to update the marketing until these units have been completed.  

 AE Rockwell
(304 units, Oklahoma City)

  • With school in session and the holidays around the corner, traffic has slowed as expected. We obtained 14 new leases in October, one less than our goal. However, November has started strong with 11 new leases to date.
  • The burn building is complete with all 16 units done and final occupancy obtained.
  • We have over 200 units with interior upgrades complete in addition to being finished with the exterior improvements.

AE Sunset
(98 units, Edmond OK)

  • 42 units are complete with interior upgrades and exterior improvements at 90% completion.
  • Creative marketing strategies are being utilized to spread the word about the change of management and upgrades. The office will be attending a student housing fair, delivering marketing gift baskets to local businesses and hosting a small community event onsite to increase traffic to the property.

Rosewood Garden Apartments
(33 units, Sacramento CA)

  • 100% occupied
  • Went into contract yesterday for the sale of this property at a price with which we are pleased.

Cedar Hills Apartments
 (124 units, Oklahoma City)

  • 96% occupied.
  • We are preleased at 100% occupancy.

AE Bodega 
(11 Units, Petaluma)

  • We are 100% occupied at this property.

AE Commerce
(20,000 SF Commercial Space, Rohnert Park)

  • The property remains on the market for sale.  

AE Three -1500 Farmers Lane
(17,400 SF Commercial Space, Santa Rosa

  • We have a new interested party and are negotiating the terms of their LOI to lease the building.

Opportunity Knocks:

405 5th Street, West, Sonoma, CA
 (7 townhomes, Sonoma)

  •  5 of the 7 units are in contract to sell.
  •  After some delays by the general contractor we have made changes to the project management and construction has regained momentum.  
  •  Check out the listing here: http://www.405fifthstreetwesthomes.com/

 

Lamplighter Apartments
(42 Units, Modesto CA)

  • All windows have been replaced which has dramatically updated the complex. Exterior painting will begin next week with landscaping to follow shortly thereafter.
  • Interior upgrades are on hold until more units are vacated. Upgraded units have obtained between 16-20% rent increase versus the rents in place when we bought property. There are currently no move outs scheduled until the beginning of January.

 

Other:

  • We facilitated three more hard money loans in the past month with another loan scheduled to be funded between Thanksgiving and Christmas. Hard money lending is a great addition to the “fixed income” portion of investment portfolios. Please contact us for additional information.

 

On the Horizon:

  • 1 Carousel Ln, Ukiah: Approximately 98,000 square feet of light industrial warehouse in an area with severe light industrial shortage. Two strong tenants occupy the entire property. This is mostly a cash flow play due to our excellent negotiated purchase price, although there should be future upside since one of the tenants lease rate is roughly ½ of current market rates.
    • Fundraising for this opportunity will begin within the next few weeks. If you would like more information, please contact our office. Investment will be granted on a first come first served basis and the total investment needed is only $1.5 Million. We plan to close this property mid-December.
  • Our broker relationships continue to bring us deals to analyze: we are currently looking at properties in Texas, Tulsa, Oklahoma City, Wichita, Little Rock, Indianapolis 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