Mid-Month Update March 15, 2014

Between working to close our Multi Tenant Income Fund, moving offices, and managing our current nineteen value add projects, the month that has passed since the last mid month has kept us busy.

We have temporarily relocated our offices to 1220 N. Dutton in Santa Rosa where we will be housed until reconstruction is done on an office building we purchased on College Ave in Santa Rosa. Last week we received design review approval to move forward and are now preparing construction drawings for building permit submission. We hope to be in the new office late this summer. Please send any mail to 120 College Ave, Santa Rosa 95401 as opposed to our current office location since it is temporary.

And now on to the business at hand…

Funds

Due to some delays in investors’ availability of funds we were forced to delay the closing of the Altus Multi Tenant Income Fund by a couple weeks.  We are now scheduled to close this coming Friday the 21st. Everything is in place for us to move forward and we are actively vetting properties. There is still some room in the Fund but time is short, so if you have interest, you will have to act fast. As a reminder, Fund investors get the first opportunity to invest in Opportunity Knocks projects. 

After literally months of waiting on PG&E for two projects inside our Altus Hybrid Fund we have finally cleared the bottleneck and can move forward with repairs. One of those properties will be placed for sale within the next week while we hope to have the other property on the market sometime towards the end of April.

New Business:

Our investor partners requested, and we listened. After having multiple of our investors requested out of state opportunities we have initiated expansion plans into Oregon and Washington. Our team has already been identified and we are working through the legal paperwork now. Expect to see opportunities in Oregon and Washington start to trickle in within the next few months.

Opportunity Knocks:

  • With our main focus being on other matters of importance, the past month has resulted in only two new purchases. The first is an SFD in Santa Rosa that we hope to have back on the market towards the end of this month. The second is also a SFD, this one located in Midtown Sacramento. We hope to have the property rehabbed and on the market within 6 weeks.
  • We accepted offers for purchase on 5 different properties this past month, though one of those offers did cancel. One of the offers was accepted over our anticipated asking price without us ever listing the property and another had multiple offers over asking and was in contract within two days of being listed.
  • We currently have single family homes in Santa Rosa, CA (Oakmont), and Fair Oaks, Ca on the market for sale.
  • Interested in owning some income properties but don’t have a lot of cash to spend? We have condos for sale in Carmichael Ca for which are sold with tenants and property management in place and for which we will guarantee a full year of rents. We have a preferred lender in place to provide the financing and with a purchase price of only $105,000 the required cash to purchase each unit is only around $30,000.

As always, investors or potential investors are welcome to visit any of these properties to view first-hand the workmanship of our contractors.

Long Shot:

Through research into a redevelopment property we uncovered an off market opportunity to purchase a farming operation that looks to be extremely profitable. In addition to the operational cash flow the purchase includes securing large amounts of water supply, which is something Altus has been viewing for the past couple years as a difficult to define but important long term investment strategy. While our team does have some agricultural expertise it is not nearly enough to assume we could take over operations of the property. As such we are working on figuring out a way structure a purchase to protect the investment and increase the strength of the income streams, even if it results in a lower total income than would otherwise be possible. If we are able to work out the kinks and structure a purchase to reduce the operational risk we will let our investors know.

If you do not currently receive our Opportunity Knocks emails with specific investment opportunities or have interest in discussing any of the above business lines in greater depth, please respond to this email or contact our office at (707) 932-5887.  We will happily add you to our distribution list and/or schedule an appointment to discuss your investing needs further.

Best,

Forrest Jinks
Altus Equity Group, LP
Office: 707/932-5887
Fax: 707/544-2972