Mid Month January 2019

 

Happy New Year! 

We hope everyone enjoyed the holiday season and is looking forward to a happy, healthy and prosperous 2019.  Speaking of jump starting your New Year, do you have an old IRA or 401k you’ve rolled over that isn’t doing much for you?  Contact Kristy to learn more about unleashing the power of investing through a self-directed IRA. Kristy can be reached at   kbrooks@altusequity.com or 707-932-5986.

In the Pipeline:

  • Arrow’s Edge Apartments in Sherwood, AR is the off market 117-unit property mentioned last month and is scheduled to close the first week of February. Our marketing package is complete and investment reservations are being taken on a first come first serve basis. Please email Kristy at kbrooks@altusequity.com to request a copy. 
  • The 133-unit townhome opportunity North of Oklahoma City is scheduled to close at the end of January.

Current Repositioning Projects:

Norman Portfolio

(340 Units, Norman OK)

  • Charleston (160 units)
    • Leased to 68%. A 4% increase over the last month.
    • Leasing was steady over the holidays which has continued into January. There have been 6 approved applications since the start of the year.
  • Other Complexes (180 units)
    • At the first of the year we moved 5 of the smaller properties to a new management company in order to fine tune the expense structure and try to jump start leasing.
    • Leasing is our top priority at these complexes as we work through the transition.

Village on the Lake

(160 Units, Oklahoma City OK)

  • Currently occupied and leased at 78%.  

Normandy Place Apartments

(80 Units, Little Rock, AR)

  • Occupied and leased at 69%.
  • We are excited to be bringing a third-party company in to collaborate with on this project. They will be taking over the day to day asset management responsibilities, working very closely with management to get this property stabilized.

Magnolia Apartments

(40 Units, Redding CA)

  • The refinance is still in process with an anticipated close Thursday. We had hoped to close this before the end of 2018 but ran into some additional documentation required by the lender.

Art House

(36 Hospitality Suites, Santa Rosa, CA)

  • We had to make some changes to the ownership structure due to changes to the Treasury guidelines surrounding Qualified Opportunities Zones. Our developer partner had to reduce his investment in the project by $150,000 and we had to increase our investment by the same amount to make sure he doesn’t own over 20% of the project. The additional investment was quickly snatched up by the existing investors in the project. Qualified Opportunities Zones provide a wonderful opportunity to defer and reduce existing capital gains and possibly even benefit from tax free future capital gains. Contact us for more information.

Items of Note at our Stabilized Properties:

Shasta View Apartments

(51 Units, Redding CA)

  • We have accepted the off-market offer received on the property in excess of $5 Mil and the Buyer’s due diligence process has begun. This is a 53% increase on our cost basis in 4 years. Due to a refinance a year after purchase we have less than $100k of original investment still in the property.

AE Hollywood

(33,580 SF Commercial Space, Hollywood FL)

  • The tenant base continues to improve and we are currently leased to 100%

McDonald Plaza

(95,300 SF Commercial Space, McKinney TX)

  • We have two lease extensions out to the largest tenants.

Other:

  • We closed one loan in December and loan volume continues to grow. If you are interested in allocating a portion of your investment portfolio to secured deeds of trust please give us a call and we will add you to the list on investors who receive the first look at new opportunities.

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