Mid Month Update - February 15, 2018

It’s been a busy month at Altus as we work on closing out the books for 2017 and getting all the required tax filings where they need to go. Here is a snapshot of what else we are working on!

In the Pipeline:

• Deeper analysis continues on a variety of properties, including a large and distressed commercial and land portfolio throughout the Oklahoma City Metro, a 255-single family home package in San Antonio, TX and an apartment complex in Waco, TX. We hope to have LOI’s out by the week’s end.

• We are in negotiations on 10 acres of light industrial land in Georgetown, TX. It is a unique opportunity involving an expected imminent domain claim by the Texas Department of Transportation.

• We have an LOI out on a 144-unit apartment building with an assumable HUD loan. The property is located in the Memphis MSA. If we are able to lock this property in contract it will be a solid fit for 1031 funds we are looking to place.

• We also have an LOI out on a property in Tulsa. We are very hopeful to expand our portfolio there.

• We are currently looking for reinvestment opportunities for $4.5 Million of 1031 Exchange equity. Using 1031s can be a great way to defer capital gains taxes and benefit from returns on a large capital base. In most cases Altus is able to fill investors 1031 needs while allowing the investor to take a passive role in the identification, purchase, financing, and asset management process.

Current Repositioning Projects:

Norman Portfolio
(340 units, Norman OK)

• There are a total of 24 units fully complete with an additional 12 to be complete by next week.
• Dry rot and siding work are 100% done at all complexes and exterior paint is wrapping up with only one complex remaining.
• Windows are complete at one complex and we have started on a 2nd property. The new windows make a huge impact on the look of the buildings and we are thrilled to be making progress with the installs.

Village on the Lake
(160 units, Oklahoma City)

• Currently 52% preleased and leasing has continued to be strong over the past several months.
• We have two different crews working on interior renovations in order to keep up with leasing. Exterior renovations are substantially complete.

Normandy Place
(80 units, Little Rock AR)

• 56% occupied, a 6% increase from last month.
• Leasing has picked up tremendously as we make our way into leasing season. We continue to support the onsite staff to keep up the momentum.

Magnolia Apartments
(40 units, Redding CA)

• We currently have 6 vacant units, of which 3 are in process of renovation. The units are scheduled for completion by the end of next week and we will get them marketed for leasing.
• Exterior improvements are moving forward with the French drain already complete and painting underway!

Items of Note at our Stabilized Properties:

AE Sunset
(98 units, Edmond OK)

• Occupied at 92%, a 2% increase from last month. This property is now considered stabilized.
• We are exploring multiple options for the refinance and hope to start the process shortly.

AE Rockwell
(304 units, Oklahoma City)

• The HUD loan is officially closed!
• Currently 92% occupied and leased.

French Villa
(110 Units, Tulsa OK)

• Currently 95% occupied and leased.
• Interior renovations are 100% complete.

Cedar Hills
(124 units, Del City OK)

• Currently 100% occupied and leased.

AE Commerce
(20,000 SF Commercial Space, Rohnert Park)

• This property has been placed back on the market for sale.

AE Carousel
(98,000 SF Light Industrial, Redding CA)

• FedEx, one of the tenants in this light industrial building, contacted us this week to begin the process of exercising their option on their lease. This is an important for step in securing additional years of their tenancy, which would be a big win for the entity.


• Many people have inquired how we plan on being involved in the rebuild efforts in Sonoma County. We don’t have any details to share at this time and are being patient while the frenzy dissipates, but we are likely to have some sort of opportunity to offer to our investors as we get farther into the process.

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