Mid Month Update May 15, 2014
Lots going on here at Altus since last month’s update so I’m just going to dive right in…
Altus Multi Tenant Income Fund – We currently have two multi-family properties in contract and are working our way through the due diligence phase. Both properties are local – one in Healdsburg and one in Calistoga – and are scheduled to close before the end of this month, though the close dates are fluid at this point. We are also looking at properties in Brentwood (28 units) and Sacramento (an off-market opportunity of 35 condo units) that look extremely promising.
To date, we have successfully funded 5 hard money loans totaling $1.15M at favorable interest rates that will allow us to meet our preferred return commitment to investors while we seek out properties that meet our purchase criteria. We could have funded additional loans but chose not to as we were concerned about having enough cash on hand to be able to move quickly on apartment opportunities. Given the progress we are making with the purchase of multi-family units, it is likely that we are going to have to sell off some of these notes prior to maturity and we have already had several investors express interest in purchasing the notes from Altus.
In Altus Hybrid Growth Fund, we sold one property in Windsor and are approximately three weeks away from completion on a larger project in Sonoma which we hope to have on the market in early June. We are outperforming our projections in this Fund to date.
- This past month we closed on the sale of one single family home in Santa Rosa and one condo in Sacramento. The condo was sold to an investor in our network who was extremely pleased with the experience he had working with our team on the transaction.
- The resale market continues to gain momentum, especially in the Sacramento area where we have 2 condos and two single family homes in contract - all of which are expected to close in the next few weeks.
- We currently have one single family home in Santa Rosa, CA on the market for sale and we have four single family homes in various stages of rehab that will be coming on the market within the next 3 weeks.
- Low on cash but interested in owning income property? Looking to do a 1031 Exchange? We have condos for sale in Carmichael, CA. Vacant units as well as units with tenants and property management in place are available and for which we will guarantee a full year of rents. We have a lender in place to provide the financing and the required cash to purchase each unit is approximately $30,000. Feel free to call our office at (707) 932-5887 for more information.
As always, investors or potential investors are welcome to visit any of our projects to view first-hand the workmanship of our contractors.
Other - Commercial:
We are continuing to work on an off market office building purchase consisting of two twin buildings with highway frontage in Rohnert Park. The buildings are 100% occupied and the plan is to split the two buildings, sell one of the buildings to the existing tenant, and use the gains from the sale to lower our basis on the remaining building which will then be held for cash flow.
If you do not currently receive our Opportunity Knocks emails with specific investment opportunities or if you have interest in discussing any of the above opportunities 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.
Altus Equity Group, LP
Ego it may be, but as an investor, does the concern resonate with you? Maybe we can word it along the lines of us going to network with other apartment market participants and get caught up on the latest news within the real estate market universe.