Mid Month Update-August 15, 2017

This past month Forrest and Kristy received a Hall of Fame award for their outstanding work in the Multifamily Industry from the Lindahl Group. This award was presented at Lindahl’s annual partnering event in Boston that we have attended for the last 3 years. This year’s event had over 800 attendees. Not only was Kristy there to accept the award she was also on a panel that discussed multifamily acquisition strategies and overcoming obstacles with closings. Her involvement in the event was an excellent visibility opportunity for Altus as we continue to build credibility in the market place.

While the summer has continued to fly by we have been working on the following.

Currently Repositioning:

Norman Portfolio
(340 units, Norman OK)
• As of today the purchases of all 11 properties in the portfolio are complete. Our site and construction team were at the properties today coordinating work, material deliveries and managing the transition of property managers. This transition will continue for the next few weeks.
• All 11 properties have exterior improvements planned, including window replacement and full paint. This scope will begin immediately. Interior improvements are scheduled to start by early September.

Village on the Lake
(160 units, Oklahoma City)
• While construction continues to progress, leasing has been the main focus at this complex. The first 5 outside leases happened quickly but traffic has slowed. We are in constant communication with the property management team to make sure marketing is producing the necessary traffic to get the units filled.

AE Rockwell
(304 units, Oklahoma City)
• We are leased at 96% at this complex, that is a 12% increase from last month.
• We continue to work through the HUD refinance with a hoped for loan refinance date sometime in October.

AE Sunset
(98 units, Edmond OK)
• Currently occupied at 86% and leased at 92%, this is a 10% increase in occupancy since last month. The refinance process is gearing up, and will accelerate in earnest once collections catch up with leasing.

Normandy Place
(80 units, Little Rock AR)
• 51% Occupancy. The current property manager has been given notice and the new property manager will begin September 1st with the expectation they will increase the leasing rate at this property. 

Crosswinds and Crosswinds Cove
(194 units, Oklahoma City)
• In the last two weeks, we have seen these properties’ traffic dramatically increase.
• Crosswinds – Occupied at 87%, a 9% increase from last month. Leased at 94%, 12% increase from last month.
• Cove – Occupied at 84%, a 4% increase from last month. Leased 95.6%, a 6% increase from last month.

Stabilized Properties:
French Villa
(110 Units, Tulsa OK)
• Occupied at 99%. The onsite manager has a waiting list for residents at this location all at or above the projected rent rates in our proforma.
• Replacement of windows is going smoothly as is the interior improvements. We will continue to work on interiors around the tenants. 

AE Bodega
(11 units, Petaluma)
• 92% occupied.
• This property was just placed back on the market for sale last week. We already have multiple offers/LOIs in hand and will be reviewing the first part of next week.

Cedar Hills
(124 units, Del City OK)
• Occupancy is at 93%.
• We are starting an exterior paint refresh at this property that should be complete by early September.

AE Commerce
(20,000 SF Commercial Space, Rohnert Park)
• We have taken this property off the market and are focusing in house efforts on leasing up the back building and working on renegotiating the lease with the large tenant in the front building. The lease with the second largest tenant is in the process of being renewed for three additional years.

AE Three -1500 Farmers Lane
(17,400 SF Commercial Space, Santa Rosa)
• Work is close to complete and should be fully done by the end of the month.
• The tenant has signed off on all lease contingencies and will open their doors on  September 1st.
• The refinance of this property is underway.

405 5th Street, West, Sonoma, CA
 (7 townhomes, Sonoma)
• The last unit is in contract and expected to close by the end of August.

• Lending activity remains elevated from previous years despite the amount of effort being put into our equity projects. Currently we have one loan in process. Please call our office at 707-932-5887 if you have any interest in either lending or borrowing or would like more information. 

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.


Ali Negus