Mid Month February 2019

 

Rain, rain go away!  It’s been a wet few days here in Northern California.  Not that we don’t need the rain, but enough is enough.  We’re hoping for sunny skies next week as we begin our office move.  We will be officially out of our 120 College Avenue site as of March 1st.  You can find us at 5810 Commerce Boulevard in Rohnert Park.  We hope to have minimal disruptions to our email and phones during our transition, but if for any reason you can’t get ahold of someone, please call Forrest directly at (707) 888-4473.

In the Pipeline:

  • We have previously mentioned Arrow’s Edge Apartments in Sherwood, AR.  This off-market 117-unit property is scheduled to close next Friday, the 22ndFor a variety of unforeseen reasons, we still have space available for equity participation. Please email Kristy at kbrooks@altusequity.com for more information. 
  • Forrest and Andy spent the week visiting some new markets that we are excited about. Hopefully that trip will result in some opportunity, including possible qualified opportunity zone properties.
  • We closed the purchase of Sunridge Estates in Enid, Oklahoma. This 133 townhome unit property was an off-market purchase in which we were able to obtain a great immediate cash flow. The property was purchased using 1031 funds from an Altus property that was sold in December. There are some minor upgrades planned for the property that will begin in the spring.

Current Repositioning Projects:

Norman Portfolio

(340 Units, Norman OK)

  • Charleston (160 units)
    • Leased to 72%. A 4% increase over the last month.
    • All construction is complete.
  • 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 jump start leasing. We are pleased with the initial performance of this company and are excited to continue to work toward optimizing property performance.
    • 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 81%.  A 2% increase from last month.

Normandy Place Apartments

(80 Units, Little Rock, AR)

  • Occupied and leased at 74%. A 5% increase from last month.  
  • We are down to two remaining units for rehab.

Magnolia Apartments

(40 Units, Redding CA)

  • The refinance closed and the property remains stabilized at 90% occupied and 95% leased with 3 units in the construction phase.

Items of Note at our Stabilized Properties:

AE Hollywood

(33,580 SF Commercial Space, Hollywood FL)

  • We are currently leased to 100%, and while the tenant quality continues to improve we are still working on tightening up delinquencies.

Other:

  • The Altus specific equity raise has been pushed back a few weeks while the attorneys and accountants work through the details of the required documentation. We have a nice list of initial interest and now hope to start taking commitments in March.
  • 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