Mid Month Update July 15, 2014

Summer is now in full swing at Altus. Many in the office have already been out on vacations or have trips planned, but somehow we continue to find projects to keep us busy!

Now on to the business at hand…

Funds:

Altus Multi Tenant Income Fund   

 

  • We are still negotiating on 33 Condos in Sacramento. We really like this opportunity because it provides rental income as needed while also providing a large potential upside. 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. Assuming we move forward with this purchase, and we expect we will, we should close in early August.
  • Unfortunately after many weeks of due diligence and multiple property visits, we cancelled the 28 unit building in Brentwood. The numbers provided were unable to be substantiated and additional repairs beyond initial expectations caused us to pass on this project.
  • With a provision in the MTIF documents that allows a certain percentage of the funds to be invested outside of CA we have been presented opportunities in Tulsa and Oklahoma City. So far these off market deals have not been a match for our requirements but we are continuing to look out of state with high hopes.
  • Just this week we began looking at a 5 unit complex in our hometown of Santa Rosa. We are in the very early stages of due diligence but the convenient location will help us expedite the process.

 

Altus Hybrid Growth Fund

  • We are currently in escrow to sell a flip project in Sonoma that is scheduled to close in the next two weeks. This project took longer than originally planned due to adding 450 SF of living space and having to move the PG&E meter, however after only 3 days on the market we received multiple offers and accepted one well over asking.

 

Opportunity Knocks:

Sacramento area:

  • We have 2 condos in Carmichael that are in contract to sell. One of the units is tenant occupied that the buyer will take over as is. The other unit has been remodeled and is currently vacant. Both transactions are scheduled to close in the next 10 days.
  • Currently we have two single family properties on the market in the Sacramento/Loomis area. Both are generating interest and we are hoping to have offers soon.
  • 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 $35K per unit.  Please call our office at (707) 932-5887 for more information.

 

Sonoma County:

  • We have 2 single family flips in contract to purchase, both scheduled to close in the next 15 days. Both projects have an anticipated project timeline of 8 weeks for turn around.
  • In Napa we have a beautiful 4 bedroom home that went on the market in the busy summer season. We are currently negotiating with a potential buyer and hope that we will have it in escrow quickly.
  • We have two single family homes currently in Sonoma that are undergoing renovations that we expect to have those on the market in the next 30-45 days.

 

Other - Commercial:

 

  • We are still working on the commercial space in Rohnert Park, CA. This property consists of two 10,000 SF buildings with 100% occupancy in one and over eighty percent in the other. It is being purchased at a 7.5 CAP rate along with rents that are significantly under market, offering tremendous upside. For the first time ever, Altus is offering a preferred return from cash flow AND a preferred IRR for an entire project period through exit. This opportunity offers an equity ownership in a single purpose limited partnership with an anticipated loan close date at the beginning of August. A PPM will be available early next week.  Please contact our office directly for a copy.

 

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,

 

Ali Negus

Altus Equity Group, LP

Office:  707/932-5887

Fax:  707/544-2972