Mid Month Update-October 15, 2017

Our thoughts are with those who have been impacted by the fires in Northern California. Everyone on the Altus team is safe and accounted for, however, some homes were lost. Our offices have reopened this week and we hope to be back fully operational soon, but please bear with us if we have delays in communication over the next few weeks.

In positive news, we are excited to announce that Forrest has been asked to return to speak at the 17th Real Estate Private Equity Summit in Los Angeles next month. Check out this link for more information on this event.

In the Pipeline:

  • We are reviewing multiple opportunities in various cities and states, including two portfolio offerings. The acquisitions team is working through the underwriting in hopes to submit multiple letters of intent before month end.

Currently Repositioning:

Norman Portfolio

(340 units, Norman OK)

  • 11 properties totaling 340 units.
  • Exterior paint is complete at 2 complexes and in process at 5 more.
  • Windows are being replaced at all complexes, this work should begin next week.
  • Interiors are moving along well
    • 5 units at Pin Oak are complete – 1 has already leased at the projected rent rate
    •  Units at Charleston are complete, plus the model unit.
    • Squire Village interiors will start in early November.

Village on the Lake

(160 units, Oklahoma City)

  • Leasing has improved, the property is currently 40% leased - a 9% increase from last month.

AE Rockwell

(304 units, Oklahoma City)

  • Leased to 98% occupancy.
  • We are in the process refinancing through HUD.

AE Sunset

(98 units, Edmond OK)

  • Leased to 94%.
  • While we were hoping to be a month into the refinance process, Freddie has increased minimum requirements, pushing back our anticipated start date to late October. Despite the delay we remain considerably ahead of pro forma schedule.

Normandy Place

(80 units, Little Rock AR)

  • The new property manager started at the beginning of September and we had our best month of ownership, 4 new units were leased and 11 units’ renovations were completed. Construction is about 75% complete and will continue slowly until more units are leased up.

Crosswinds and Crosswinds Cove

(194 units, Oklahoma City)

  • Crosswinds – Occupied at 92%, 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%, 92% leased.

Magnolia Apartments

(40 units, Redding CA)

  • We closed on this property Oct. 13th.
  • It is currently 100% occupied. We will begin interior renovations as units become available.

Stabilized Properties:

French Villa

(110 Units, Tulsa OK)

  • Currently 97% occupied, 99% leased.
  • Window replacement will be completed by the end of this month.
  • Interior upgrades are still ahead of schedule for completion before the end of this year.
  • This property is in the process of being refinanced to permanent financing through Freddie Mac

AE Bodega

( 11 units, Petaluma)

  • 92% occupied.
  • We recently accepted an offer on this property and escrow will open this week.

Cedar Hills

(124 units, Del City OK)

  • Occupancy is at 97% and preleased to 98%, leasing traffic has stayed consistent at this property.

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! The final list of outstanding items is complete and pending inspection final certificate of occupancy should be issued.
  • We received a non-solicited LOI for the sale of this property at twice our costs basis. Escrow has opened and we hope to close before the end of this year.

405 5th Street, West, Sonoma, CA

 (7 townhomes, Sonoma)

  • A full price offer has been accepted on the final unit. We hope to be able to close out this project within 30 days – 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