Mid Month March 2019

Hello from 5810 Commerce Boulevard in Rohnert Park! Our office move is official, and while we are still settling into the new space we are fully back up and running. There have been a few phone and internet interruptions so if you have any difficulties reaching the office please call Forrest directly at (707) 888-4473.

As our portfolio continues to grow, we are looking to expand our Asset Management team in Oklahoma City and are looking for boots on the ground.  We’ve begun the search for an Asset Manager. If you know of any potential candidates, please send them our way.

In the Pipeline:

  • We have a 26,100 SF retail shopping center in NW OKC in contract. This property is located next to one of our current assets. This property has been on our radar for the last few years and needs a light façade lift to bring rental rates up to market.
  • We also have 860 Acres in Glenn County under contract! A local orchardist wants to partner with us for the purchase and establishment of an almond orchard. We anticipate an investment structure high preferred returns and expect less than a two year turn around. Due diligence is underway.
  • Altus made an offer on a two-property portfolio in Lubbock, Texas, currently owned by a motivated seller.  Lubbock, the home of Texas Tech University, is a growing, vibrant college town that Altus has tried on multiple occasions over the past few years to gain entry into.  The properties have been mismanaged, with one of the two at an occupancy level well below market averages.
  • Altus has offered to purchase a multi-tenant industrial property in Tupelo, MS.  Tupelo, while a smaller market, is a highly ranked ‘micropolitan’ in a region known for a strong manufacturing sector.  The industrial property is poised for rent growth, as there is strong demand from ongoing business growth however supply is limited, with very little new product being built.  Additionally, this property sits in a Qualified Opportunity Zone, and when combined with additional land for expansion, represents a QOZ fund investment opportunity. Contact Altus if you have questions about QOZ investment benefits.

Current Repositioning Projects:

Norman Portfolio

(340 Units, Norman OK)

  • Charleston (160 units)
    • Leased to 72%.
    • 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 leased to 83% a 2% increase from last month.
  • Traffic has begun to pick up in the OKC market and we hope to have this property fully stabilized by early June.

Normandy Place Apartments

(80 Units, Little Rock, AR)

  • Occupied at 72%. A 2% decrease from last month due to a couple of evictions.
  • The third-party asset manager that has been brought in to consult is working very closely with the onsite manager to ensure proper qualification of residents and resident retention techniques.

Items of Note at our Stabilized Properties:

Arrow’s Edge Apartments

(118 Units, Sherwood AR)

  • This property officially closed February 22nd. A local management company was chosen as the third-party management company and we were happy to be able to keep the current staff on after the purchase.
  • The first month of ownership will be focused on establishing reliable reporting and accurate data collection. The office team will then begin to focus on lease renewals.

Sunridge Townhomes

(133 Units, Enid OK)

  • We closed this transaction in early February. At close the property was 90% occupied, we are currently occupied at 97% and have applications on all vacant units. A definite win!

AE McDonald

(95,310 SF, McKinney TX)

  • A major tenant has signed a 3 year lease extension with a 18% rental rate increase which is well above our proforma rate.
  • We have several tenants’ leases that are coming up for renewal, many of these tenants have expressed interest in signing extensions.

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 hope to start taking commitments in April.
  • 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