Mid Month Update September 15, 2014

Welcome once again, current and potential investors to Altus’ mid-month update.  As a reminder, this email was born out of a desire to provide more direct communication to you, to highlight projects you might be interested in investing in, and to give us the chance to feature many of the opportunities discovered by Altus during the past month.  Our goal is to keep this email to a relatively short summary, so let’s get started.

Funds:

Altus Multi Tenant Income Fund  

  • We officially took ownership of 33 Condos in Sacramento marking our first purchase for the Fund.  The transition has gone very smoothly and we’re pleased with the property management in place and that the tenants are all happy.  We look forward to realizing strong cash flow and upside on this deal.
  • We had to walk away from the 138 apartment units in Tulsa as in our due diligence we discovered the actual performance of the property was far inferior to what was being marketed.  However, we still like the Tulsa and are continuing to explore the market. We currently have two team members in the Tulsa area meeting with agents and looking at properties. We expect to submit several new offers over the next few days.
  • While we are actively reviewing 1-2 complexes per week and pursuing those that look promising, we are staying diligent in verifying the performance of the properties to make sure the properties meet our standards. We are currently looking at two multi-unit properties in Fairfield, CA and a 21 unit deal in Sacramento. 

Altus Hybrid Growth Fund

  • Occupancy continues to be at 100% for the rentals in this particular fund which speaks to the current, tight rental market.
  • We closed escrow on our flip project on Solano Avenue in Sonoma which was a beautiful 2,200 sqft. 3 bedroom, 3 bath vintage farm house on a third of an acre that was snapped up after only 3 days on the market and with multiple offers.  We ended up selling the property for $865K which was more than $25K over asking.

Opportunity Knocks:

Sonoma/Napa County:

  • Our quickest transaction in the last month was 12 days start to finish!  This was the sale of a home with a rental unit in Sonoma which sold for $30K over asking, all cash, and no contingencies.      
  • We have another rehab project that we put on the market for sale in Sonoma and received an offer over asking in less than 5 days.  The buyers are completing inspections and this property is scheduled to close by the end of the month. 
  • We are scheduled to close this week on the sale of a rehab property we purchased in Santa Rosa ~6 weeks ago.  We will carry back a portion of the sales price for a larger payoff down the road.
  • Altus has a property under contract in Graton with 3 houses on one lot and we are in the midst of performing our due diligence and inspections.  We are optimistic that this deal will offer the opportunity to unlock hidden value through a lot split. 
  • We had a home on the market in Napa that suffered some damage due to the earthquake, though not significant.  That house has been pulled off the market while we complete repairs.  We plan to re-list it in the next two weeks or so. 

Sacramento area:

  • We have two condo units in contract to sell in Carmichael and expect to close on those before the end of the month.  We are about to begin rehabbing a recently vacated unit in the complex and have one vacant unit currently available on MLS. 
  • We sold an adorable bungalow in Sacramento to a buyer for all cash and were able to close the transaction quickly.  A win-win!
  • Interested in owning income property or looking to do a 1031 Exchange?  We have a few remaining condos for sale in the Carmichael complex.  We have a lender in place to provide financing and the required cash down is approximately $35K per unit.  Please call our office at (707) 932-5887 for more information.

Commercial:

  • We closed on the two fully leased office buildings in Rohnert Park and we look forward to this project being a very steady performer for Altus and its partners.  We will begin the process of splitting the two buildings into individual properties within the next month.
  • We are working on a 19,000 sqft. off market retail center in the Sacramento area.  The center is fully leased but at rates well below the current market lease rates.  The initial yields to the investors will not be quite as high as other leased investments we have funded, but due to the size of the repositioning the total returns are expected to be even higher than we are normally able to produce.  We will be looking for investors for this opportunity in coming weeks if we decide to move forward.  Please let us know if you have an interest in being contacted with more detailed information.  

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

Operations Manager