Mid Month Update January 15, 2015

Happy New Year!  After a nice break over the holidays we’ve hit the ground running here at Altus and are back at work more inspired and focused than we’ve ever been before.  Not only are we currently reviewing some of the biggest deals in Altus’ history, we’re committed to getting to know our investors better in 2015 so that we can improve how we meet their investing needs. 
 
Growing our investor base will be another top priority this year.  We work hard to make sure that our investors are delighted both with their investments and with their interactions with the Altus team. We would love for each of you to become an advocate of ours by sending us a referral in 2015.  To make this even easier, let us take you and a friend to lunch so we can introduce ourselves and what we offer.  Contact me directly at (707) 238-2048 and we’ll put something on the calendar. 
 
Now on to our mid-month update.
 
Funds:
 
Altus Hybrid Growth Fund
 

  • We had an offer accepted this week on a flip property in Contra Costa County and we are putting together a project plan so that work can begin immediately after closing - scheduled for the first week of February or sooner.
  • Renovations to the Palm Avenue property in Healdsburg have stalled due to a permitting issue with the City but we expect to have a full crew back on the project within the week.

Altus Multi Tenant Income Fund 
 

  • On December 31st, 2014 we closed on 51 units in Redding, CA for $3.25M.The sellers purchased the complex, moved out all tenants, renovated the units and were motivated to sell prior to releasing all units and stabilizing the property.As a result, we were able to purchase at an estimated 8% CAP rate and secure financing at attractive rates thanks to our previously existing relationship with a lender that would have otherwise required a fully stabilized property. Most impressively, we were able to do the entire transaction in less than 30 days.
  • We will be looking to place the remaining ~$400K of MTIF funds in early 2015 and have several LOIs out for properties in Oklahoma City, one of which is off market.In addition, we are negotiating on 20 units in Sacramento and are in discussions with the owner of two off market complexes in Tulsa.

AE Commerce
 

  • We renegotiated our first tenant lease which resulted in a 14% increase in the base rent and a 3 year commitment by the tenant.

AE One 
 

  • We are currently liquidating this portfolio of homes as per the original fund strategy.
  • Since last month we have sold two properties, the 10 acre horse property in Loomis has gone into contract to be sold, and three additional properties have each received multiple offers over asking.We are in the process of rehabbing one house that will go on the market in the next few weeks.

Opportunity Knocks:
Sonoma/Napa County:
 

  • Graton, CA – Work continues on the vacant unit at this property.Pest work is mostly complete and the new roof is on.Tenants have been given notice to move out of the 2nd unit and the 3rd unit will receive a bath remodel while occupied.Once work is completed, all units will be leased up at market rents (nearly double what we’re getting now) and sold as a package of 3 homes on one lot.
  • Sonoma, CA – The addition is nearing completion and landscaping plans are being reviewed. Pool house renovations will begin in the next few weeks.Kitchen cabinets and bath vanities are being built and high end appliances are on order.This luxury property is on track to be on the market in mid-March.
  • Napa, CA – Unfortunately this property is back on the market after the buyers backed out.We are working on some minor repairs while our agents step up their marketing efforts to get this home sold.

Sacramento Area:
 

  • We are in contract on a 36,000 sqft. office building in Gold River, CA.This is an off market opportunity brought to us by an agent in our network.The building is only ~30% occupied and we have several interested parties looking to purchase the building from us immediately after closing at a significantly higher price.We would guarantee rents for 5 years and conservatively estimate that there would be a 200% return within that timeframe.
  • Carmichael, CA - Condo units are still available either individually or in a discounted, bulk package.Please contact our office at (707) 932-5887 if you have any interest.This is a great 1031 Exchange opportunity!

 
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 detail, please reply to this email or call our office at (707) 932-5887.  We will gladly 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