Mid-Month Novemeber 15, 2017

A month has passed since the devastating fires here in Santa Rosa, and while we are all still processing the damage and impacts to our community, Altus is back to business as usual.

Due to the impacts of the fire, our accounting manager has chosen to spend more time with her young family. We fully support her decision and wish her the best, though it does leave a hole in our team. Efforts are underway to locate her replacement. If you know of anyone who would be a good fit for Altus, please let us know.

In the Pipeline:

• We reviewed multiple deals in the last month that did not meet our investment criteria and looked at a few that were very interesting that we are continuing to pursue. The acquisitions team is working diligently on creating new broker relationships to keep the deal flow coming in.

Current Repositioning Projects:

Norman Portfolio
(340 units, Norman OK)

• Exterior paint is complete at 7 of the 11 properties.
• Over 50 unit renovations are in process, 2 units are fully complete.
• Window delivery is expected before the end of this week and installation will begin right away.

Village on the Lake
(160 units, Oklahoma City)

• Currently 49% leased, a 9% increase from the previous month.
• Leasing has continued to improve over the last month and we had our best week ever this past month, where in one week alone, 13 new leases were approved. Construction is continually pushing to keep up with the leasing team.

AE Rockwell
(304 units, Oklahoma City)

• Occupied at 94%, Leased at 96%.
After ten months and several broken promises HUD finally delivered written commitment for a loan. Unfortunately, one of the key terms changed from what they had communicated to us right up to the time of the commitment. While there is a short term impact from the change, the long term loan structure is still the same and we are likely to move forward with the refinance.

AE Sunset
(98 units, Edmond OK)

• Occupied at 90%
• While we were hoping to start the refinance at the end of October, Freddie’s increase on the requirements has delayed our initiating the process.
Normandy Place
(80 units, Little Rock AR)

• While occupancy is still lower than desired we have finally turned a corner here at Normandy! 5 new leases approved in the last two weeks plus a significant increase in interested traffic show the hard work that the new property management company has put in.

Crosswinds and Crosswinds Cove
(194 units, Oklahoma City)

• Crosswinds – 2% increase in occupancy since the last update. The refinance of this property should be finalized by the end of this month.
• Cove – Occupied at 92%, leased to 96%. 

Magnolia Apartments
(40 units, Redding CA)

• The property remains 100% occupied.
• Exterior improvements will begin before the end of the month: fresh trim paint, landscaping work and drainage improvements are planned.

Stabilized Properties:

French Villa
(110 Units, Tulsa OK)

• Currently 94% occupied - a 3% decrease from last month. 
• Window replacement is 100% complete.
• Interior upgrades are still ahead of schedule for completion before the end of this year.
• The refinance to permanent financing through Freddie Mac should be complete in early December.

AE Bodega
(11 units, Petaluma)

• 100% occupied.
• The property is under contract for sale, it is scheduled to close the early part of 2018.

Cedar Hills
(124 units, Del City OK)

• Currently 98% occupied, 100% leased.
• The onsite team has worked extremely hard to get this property leased and we are extremely pleased with their performance.

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 was extended for an additional three years.

AE Three -1500 Farmers Lane
(17,400 SF Commercial Space, Santa Rosa)

• Construction is 100% complete and we received final certificate of occupancy.
• This property is under contract for sale, closing is scheduled for after the first of the new year.

405 5th Street, West, Sonoma, CA
 (7 townhomes, Sonoma)

• After more than three years of ownership and two years of construction the last unit at this development has sold. We wish all of the new owner’s many years of happiness!

• Lending activity remains elevated from previous years despite the amount of effort being put into our equity projects. 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