Mid Month Update-September 15, 2017

I’ve been talking to a lot of people lately about how they’re looking forward to the Fall “slow-down”, but here at Altus we seem to be experiencing a fall “boom” with new projects in the pipeline and with recent acquisitions.  Read on for more details!

In the Pipeline:

Magnolia Apartments

(40 units, Redding CA)

  • This stabilized property was brought to us off market.
  • Located close to an existing property in our portfolio - allowing for the sharing of an onsite manger and maintenance person.
  • Currently raising money as a 13.5 % second position debt.  Please contact Kristy at (707) 932-5986 if you have any interest in this opportunity.
  • Scheduled to close the first week of October.

 

Currently Repositioning:

Norman Portfolio

(340 units, Norman OK)

  • Our most recent acquisition that closed in mid-August – 11 properties totaling 340 units.
  • The leasing office renovation is already complete and the new onsite team has moved in. This office will manage all 11 properties in the portfolio.
  • Exterior painting has begun at 3 of the 11 properties, window replacement will begin next week and interior renovations have already begun at two of the properties.

Village on the Lake

(160 units, Oklahoma City)

  • All exterior renovations at this property are complete, check out a few of the photos here:
  • Leasing continues to be the main focus at this property and we are working on creative ideas to get people in the door.   

AE Rockwell

(304 units, Oklahoma City)

  • Leased to 96% Occupancy
  • We are in the process refinancing through HUD. Our final HUD inspection is today and we hope to gain some clarity on the timing of the refi. Since HUD can be a little bit of a black box we don’t know when the loan will be finalized, but we are hoping for October.

AE Sunset

(98 units, Edmond OK)

  • Construction is complete and we are leased to 91% Occupancy.
  • While we were hoping to be a month into the refinance process, Freddie has increased minimum requirements pushing back our anticipated start date till late October. Despite the delay we remain considerably ahead of pro forma schedule.

Normandy Place

(80 units, Little Rock AR)

  • New management took over the property on the 1st of September. 4 units have been leased since then, pushing occupancy just over 50%. This is as many units as were leased over the previous 3 months with the prior management.
  • Two team members from Altus will be onsite next week to make sure construction is progressing and the onsite staff has support during the transition.

Crosswinds and Crosswinds Cove

(194 units, Oklahoma City)

  • Crosswinds – Occupied at 92%, a 5% increase from last month. Leased to 94%. We initiated the refinance of this property this week through an insurance company with loan term of 4.15% fixed for ten years on a 25-year amortization.
  • Cove – Occupied at 91%, a 7% increase from last month. Leased to 97%.
  • Current market occupancy in NE OKC is 93% - we are exceeding this at both locations.

Stabilized Properties:

French Villa

(110 Units, Tulsa OK)

  • Occupied at 99%.
  • Interior unit upgrades are going smoothly and the long term resident base is thrilled to have updated lighting, water efficient faucets and toilets.
  • Windows replacement is over 75% complete.
  • A Freddie Mac refinance loan application is expected to be submitted tomorrow.

AE Bodega

(11 units, Petaluma)

  • 92% occupied.
  • The property is currently a pocket listing for sale and multiple parties have expressed interest in purchasing The property will be fully listed for sale later this month.

Cedar Hills

(124 units, Del City OK)

  • Occupancy is at 94% leased to 97%. Del City’s average vacancy rate is 11% - we are leading this submarket in occupancy!
  • Exterior painting is complete and the complex looks wonderful!

AE Commerce

(20,000 SF Commercial Space, Rohnert Park)

  • We have taken this property off the market and are focusing in house efforts on leasing up the back building and working on renegotiating the lease with the large tenant in the front building. The lease with the second largest tenant was extended for an additional three years.

AE Three -1500 Farmers Lane

(17,400 SF Commercial Space, Santa Rosa)

  • The tenant has a temporary certificate of occupancy and has opened their doors! Minor landscaping and exterior improvements are left to complete before final occupancy will be given. This is expected to be wrapped up by the end of September.
  • We received a non-solicited LOI for the sale of this property yesterday. The purchase price is almost twice our cost basis and the investors are quite happy.

405 5th Street, West, Sonoma, CA

 (7 townhomes, Sonoma)

  • One unit remains for sale – see the listing here!

Other:

  • Lending activity remains elevated from previous years despite the amount of effort being put into our equity projects. Three loans were completed in the past month. Currently we have one loan in process. Please call our office at 707-932-5887 if you have any interest in either lending or borrowing or would like more information.  

 

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