Mid Month Update June 15, 2014

 

Before we get started Altus would like to wish all the Dads in our readership a Happy Father’s Day!

School’s out and summer fun has begun!  BBQs, beach days, vacations and spending time with family and friends.  I myself will be taking some time off to visit family back East so you will receive next month’s update from our lovely and talented Project Manager, Ali Negus, who will be holding down the fort while I’m away.

Now let us begin… 

 

Funds:

Altus Multi Tenant Income Fund   

  • After placing more than half of the funds into hard money loans we stopped lending because we believed we would need the cash for two properties we had in escrow – one in Healdsburg and one in Calistoga.  After our due diligence we determined that neither of these properties met our minimum requirements so we cancelled both escrows. 
  • We are excited about an off-market opportunity of 33 Condos in Sacramento.  So far everything looks favorable for us to move forward.  Units would be purchased at a little below $75K each and previously sold as high as $230K in 2006 which indicates there should be upside potential as the residential markets continue to recover. 
  • We also have a 28 unit building in Brentwood currently in escrow however the original information provided by the seller is not matching up with the marketed “actuals” provided by the listing agent which diminishes our confidence that this property will move forward.
  • With a provision in the MTIF documents that allow a certain percentage of the funds to be invested outside of CA we have cast a wide net which has resulted in us identifying an opportunity in Tulsa, OK that is in the early stages of the due diligence process.

Altus Hybrid Growth Fund,

  • We have one new vacancy in our rentals after months and months of 100% occupancy.  We have several potential applicants we are vetting and should have the property rented to a qualified, quality tenant shortly. 
  • We are staging a flip property this coming week and it will be on the market at the end of the week.

Opportunity Knocks:

Sacramento area:

  • After languishing on the market for a spell, this past month we closed on the sale of two single family homes – one in Fair Oaks and one in Rocklin. 
  • In Carmichael we currently have 2 condos in contract to sell to one buyer.  One of the units is tenant occupied and we will be relocating the individual to another unit so the buyer can take possession of a vacant unit per the contract. We hope to close both units within the next 45 days.
  • We have a single family home on 33rd Avenue in Sacramento staged and ready to be listed for sale this week.  This is a 3 bedroom, 2 bath gem in McKinley Park just a block from the Rose Garden.  We anticipate a lot of interest in this property.
  • In Loomis we just listed a 10 acre property with a beautifully remodeled home complete with a 9 stall horse barn, riding arena, and year round pond.  We have had several interested parties tour the property multiple times.
  • Low on cash but interested in owning income property?  Looking to do a 1031 Exchange?  We have additional condos for sale in the Carmichael complex.  Vacant and occupied units with property management in place are available and Altus will guarantee a year full of rents.  We have a lender in place to provide financing and the required cash down for purchase is approximately $33K per unit.  Please call our office at (707) 932-5887 for more information.

Sonoma County:

  • In Sonoma County, we closed on the sale of a single family home in Santa Rosa and we are in contract to purchase a property on 5 acres in rural Santa Rosa.  While we have plans to do a simple rehab on the home, this property will unlock the majority of its value through clean-up and trash-out on the land itself.
  • We completed the renovation of a home in Napa in a very desirable neighborhood and it is currently on the market and has been met with great feedback.  We hope to have an offer soon.
  • We have two single family homes currently in Sonoma that are currently undergoing renovations that we hope to have those on the market in the next 45 days.

Other - Commercial:

We are in contract for the “twin” buildings with highway frontage in Rohnert Park.  Be sure and keep your eyes open for an upcoming OPPORTUNITY KNOCKS email.  The property is located at 5810 and 5830 Commerce Boulevard in Rohnert Park.  For the first time ever we think we are going to offer not only a preferred return from cash flow (starting Day 1) but also a preferred IRR for the entire project period through exit.  Details coming this week!

If you do not currently receive our Opportunity Knocks emails with specific investment opportunities or if you have any 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.

Best,

 

Kristy Brooks

Altus Equity Group, LP

Office:  707/932-5887

Fax:  707/544-2972