Mid Month Update-February 15, 2017

We are excited to announce the addition of Andrew Eicher to the Altus team! He will be based in the Mid-South where many of our current projects are. Amongst his other responsibilities, one focus will be to upgrade the way we report to investors. Andrew will be contacting a sampling of our investors across different projects for feedback, if he contacts you please help us improve by providing him with any input you may have. If you have definitive feedback please let me know and I will make sure you are included on the list of people he will contact.

Onto our current projects!

Funds:

Altus Multi Tenant Income Fund

  • Villaggio (33 units, Sacramento) –100% occupied.
  • Shasta View (51 units, Redding) - 98% occupied.

Single Purpose Entity Investments:

Crosswinds and Crosswinds Cove
(194 units, Oklahoma City)

  • 93% Cove
  • 87% Crosswinds
  • Crosswinds Cove (68 units) exterior renovations are complete.
  • Work at Crosswinds (126 units) has progressed with the completion of the parking lot repaving, exterior wood work and the pool area.
  • Interior renovations at Crosswinds have begun with 6 units. We will be testing the market with these 6 units and their varying upgrades to see how far the rent rates can be pushed.

Normandy Place
(80 units, Little Rock AR)

  • 67% occupied
  • 4 of the 12 complete units have been leased at the new rent rate.

 AE Rockwell
(304 units, Oklahoma City)

  • 75% occupied
  • January ended with a net increase of 8 new leases, not as many as we were hoping for but still progress in the right direction.
  • The onsite team is preparing for the leasing upswing that happens around tax season with new spring colored flags, balloons and a spotless site.

AE Sunset
(98 units, Edmond OK)

  • Each time a team member of Altus visits this property we get more and more excited about the transformation it has undergone. The community is thrilled with the improvements and traffic has increased dramatically at our weekly open houses.
  • Similar to Rockwell, we are gearing up for the rush from tax refunds and with 68 of the 98 units complete.

Cedar Hills Apartments
 (124 units, Oklahoma City)

  • 95% occupied.
  • We continue to work closely with the property manager to fine tune resident qualifications, resident retention and spending.

AE Bodega
(11 Units, Petaluma)

  • 100% occupied
  • ​A City Council meeting is scheduled for the beginning of March to continue the PUD development approval.
  • The decision was made to wait to go to market until that approval is given.

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)

  • Lease negotiations are complete with an excellent tenant on a ten year lease. The only remaining hurdle is the use permit required for the tenant to be able to move in.

Opportunity Knocks:

1 Carousel Lane, Ukiah, CA
(98,000 SF Light Industrial Space)

  • Remains stable with two tenants. The larger of which we are in negotiations to sign a five year extension, locking them in as tenants for the next ten years.

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

Lamplighter Apartments
(42 Units, Modesto CA)

  • The property was listed on 2/7/17. We are now in contract a little over asking and in excess of the expected sales price in our pro forma.  

Other:

  • After funding the three loans in the pipeline for January we lined up another loan that is supposed to close this week. As we push to grow our lending business this year we continue to look for more lending opportunities.

On the Horizon:

  • Villages on the Lake, Oklahoma City – We are officially in contract on this 160-unit complex. Full interior renovations are planned along with an extensive exterior refresh. This investment is a structured program with a single investor. this property is scheduled to close March 5th.
  • We have an LOI out on a two property portfolio in Arkansas. The larger property will require a significant amount of exterior renovations while the other property is relatively stable in a tertiary market outside of Little Rock.
  • Our broker relationships continue to bring us deals to analyze: we are currently looking at industrial warehousing and multifamily properties in Dallas, Tulsa, Oklahoma City and Little Rock, and Texarkansas (Tx). . 

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