Mid Month - May 2018

Straight to business this month, here’s what’s new!

In the Pipeline:

  • AE Shazam, the large commercial/retail portfolio we currently have under contract is still moving along. We will receive last week’s appraisal results in another 2-3 weeks.  Once we have those in hand we will be able to move forward with structuring the offerings and we’ll have much more information to share. Please call our office at 707-932-5887 or reply to this email if you would like to add your name to the list of interested parties to get an advance look at what appears to be an amazing opportunity.  There may also be openings for the placement of 1031 funds within this portfolio as well.  
  • Hollywood, FL – We are doing onsite inspections Thursday of this week. Pending the inspection, we plan to move forward with the purchase.
  • We are continuing to pursue the possibility of a joint venture with a well-respected builder as part of the fire rebuilding efforts.  Our proposal is currently under review and we hope to have more details for you next month.
  • 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 processes.  Contact our office if you are considering a 1031.  Whether or not you decide to partner with Altus for your 1031 reinvestment, we are happy to provide some guidance that can greatly increase your likelihood of success.

Current Repositioning Projects:

Norman Portfolio

(340 units, Norman OK)

  • Charleston (160 units) – Currently occupied at 44%, leased to 49%. This is a 5% increase since last month.
    • As I mentioned last month, the onsite team in Norman had a goal of signing 40 leases in April. I’m happy to report that they succeeded! The Charleston community alone had 26 of the 40 new leases.
    • Construction continues to make progress with over 40 units 100% complete and 25 in final punch phase.
  • Other Complexes (180 units) –
    • Windows installation is moving at a rapid pace and the properties are looking great!

Village on the Lake

(160 units, Oklahoma City)

  • Currently occupied at 45% and leased to 47%.
  • Leasing continues to be a daily topic of conversation with the management team. Additional resources have been sent to spend time onsite to ensure all hands are on deck in the lease up season.
  • Construction is over 65% complete for interior units and the crew continues to turn units over weekly and are scheduled to be 100% complete by the end of May.
  • The refinance process is progressing - we locked our rate at the end of April and have begun the 90-closing period.

Normandy Place Apartments

(80 units, Little Rock, AR)

  • Currently leased to 60% which is an 8% increase from last month.
  • We continue to push the property managers here with bi-weekly check ins and measurable leasing plans. 

Magnolia Apartments

(40 units, Redding CA)

  • Interior renovations have slowed.  There are 3 units in process scheduled for completion by the end of the month.

Stabilized Properties:

AE Sunset

(98 units, Edmond OK)

  • Occupied at 96%, leased at 98%.  

AE Commerce

(20,000 SF Commercial Space, Rohnert Park)

  • This property remains on the market for sale.

AE Carousel

(98,000 SF Light Industrial, Redding CA)

  • We are in the process of negotiating an extension with FedEx, one of the tenants in the building.  

Villaggio (Altus Multi Tenant Income Fund)

(33 Units, Sacramento CA)

  • The backup offer we had accepted on this property also ended up not working out. We are going to officially place this property on the market at the end of May.

Other:

We brokered two asset-based (hard money) loans this month and are set up to do construction loans on fire rebuilds. If you know anyone building and in need of financing, please send them our way.

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,

Ali Negus