April is bringing activity at Altus. We recently hired two new team members, Marissa Thomas (administrative assistant) and Will Stephens (acquisitions project manager). We have also hired a director of operations who will start later this month. Forrest was invited to be a guest speaker on the CRE Power Hour podcast hosted by Lisamarie Wand and Stephanie Gilezan. During that show, Forrest shares some experiences from the ‘08/’09 financial crisis, discusses his 2024 outlook and talks about the rationale that fueled the birth of the Altus Opportunity Fund. If you’d like to watch that episode of the CRE Power Hour, click here. Unexpectedly, the past month has brought a flurry of buyers’ interest in our various properties. We have been getting dozens of calls a week for the past year, which haven’t gone anywhere because none were willing to hit our asking price, and with excellent fixed rate debt in place, we had very little incentive to sell at anything other than an excellent price. Suddenly our asking prices are being met, some of which are higher than where we internally valued the properties at the end of 2022, DESPITE price erosion on the overall market. We believe this price strength ties back to the excellent assumable debt on these properties. Nearly all of our equity investment workflow and efforts will be dedicated to the new funds for the foreseeable future. If you haven’t invested yet, but you have interest in doing so, please reach out to Chad Richards (crichards@altusequity.com) to inquire. Additionally, if you would like to review the Opportunity Fund or the AE HGF NPL Fund investment decks, follow this link and this link respectively to receive a copy for review. We have numerous deals in the works. Read below for a snapshot of our current activities: Activity Abuzz: Multifamily Construction, Oxford, MS: Progress continues on the 98-unit multifamily project. We’re nearing completion of the horizontal phase and vertical construction is set to begin shortly. This project is part of the Altus Opportunity Fund, though there may also be opportunity for direct investors by LPs if there is interest. This project is in a Qualified Opportunity Zone, which doesn’t help the Opportunity Fund directly, but if you have interest in a deal ready made for the benefits of a QOZ, please contact us ASAP so we can make sure the roll out is handled in a way to ensure QOZ eligibility. Amazon Distribution Warehouse, CA: Final agreements are being negotiated for the Amazon distribution center project. We’re excited about this build-to-suit venture and the return/risk profile of the project. This project will go into the Fund, though there may be opportunity for LP investors alongside the Fund. Industrial Warehouse, MS: Due diligence is nearing completion on a 350,000 sq. ft. warehouse, and all signs point to this being a fantastic purchase. Between the existing improvements and additional land for expansion, this appears to provide almost unheard-of intrinsic value. We are targeting a May 2024 closing and this project will represent another addition to the Altus Opportunity Fund. Highfill Duplexes Phase I, NW Arkansas: Construction for the first phase (100 units) is nearly complete and leasing is ongoing. We have closed on the sale of the 70 lots mentioned in last month’s Mid-Month. We are in the process of determining when we will start the second phase of construction. New Industrial, Charleston, SC: The Camp Hall industrial project is close to complete with full completion of the three buildings phased over April and early May. Leasing activity for the 1.4 million square feet of space is ongoing. Multifamily, Tulsa, OK: A strong off market offer was accepted in March and has progressed through the removal of the inspection contingencies. The transaction is currently pending the loan assumption, which is anticipated to be in May. Leased Industrial, Greeneville, NC: Due to interest rate changes and some cost overruns in the Tis for the new tenants, Altus determined the property would not be able to be refinanced and would have to be sold. Contingencies have been removed and the sale is scheduled to close before the end of the month. Industrial, Austin TX: An offer has been accepted and due diligence well underway for our TIC interest in the property. The transaction is not scheduled to close until Q3 or Q4, but the buyer will have $1 million in a non-refundable deposit pass through at the end of due diligence to ensure performance. Multifamily, North Oklahoma, Multifamily, Redding CA, Industrial, Dallas/Fort Worth TX: Letters of intent have been negotiated on these properties, all of which at prices that convinced us to sell. The purchase and sales agreements are currently progressing for all three properties. Fund Updates: Altus Opportunity Fund: Momentum continues to build with increased investment inflows. The fund’s diverse portfolio is showing promising early results, aligning with our strategic investment thesis. For more information on the Opportunity Fund, click here. NPL Fund: The Non-Performing Loan Fund is outperforming expectations, with significant progress in loan acquisitions and workouts, indicating robust potential returns. For more information on the NPL Fund, click here. ACG Updates (Altus Capital Group) – Private Money Lending: Our lending division remains active, with loan quality often much better than it would have been prior to the runup in interest rates. We continue to be bullish on private debt for the foreseeable future. As always, opportunities are first offered to our active investor interest list. If you have a portion of your investment portfolio that is earmarked for debt, please reach out so we can add your name to our hot sheet. If you are trying to figure out the capital stack for your own project, feel free to reach out and we are happy to brainstorm possibilities with you. For those looking to explore equity investments or private lending opportunities, please contact Chad Richards (crichards@altusequity.com), our Director of Investor Relations at (707) 227-4422 or reply directly to this email. We’re here to help you navigate the investment landscape and identify opportunities that align with your goals. Here’s to a prosperous April! Warm regards, The Altus Investment Team This message is not an offer or solicitation of an offer to buy or sell any securities. Offers are made only by prospectus or other offering materials. The information contained herein has been obtained from a variety of sources which are believed to be reliable, but have not been independently verified, and may be subject to change without notice. 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