Mid Month April 2019

Spring is here and with that comes LEASING SEASON! To say we have been on the edge of our seats waiting for this is an understatement. There are multiple properties in our portfolio that need a boost in occupancy and this is the best time of year to support that. All hands are on deck to get the properties leased up and performing.

Here is a snap shot of what we have been up to.

In the Pipeline:

 

  • The multi-tenant industrial property in Tupelo, MS mentioned last month is now officially under contract to purchase. Tupelo, while a smaller market, is a top ten ranked ‘micropolitan’ in the country and is a region known for a strong manufacturing sector. A couple of Altus team members are visiting the property this week and will be meeting with local officials this week to determine the best use for expansion on the property.  Also, as mentioned last month, this property sits in a Qualified Opportunity Zone and this investment will be structured as a Qualified Opportunity Fund.  Please contact the office at 707.932.5887 if you have questions about QOZ investment benefits.
  • We continue to explore the potential of a 26,100 SF retail shopping center in NW OKC that we have in contract. The cost of the planned façade lift and tenant improvements required to bring the site to market rates has come back higher than we initially anticipated but we are hopeful to come up with a creative solution to close the deal.
  • Chico, CA – We are partnering with a builder on the construction of 104 Class A units in Chico, CA. The builder is purchasing an option to purchase the property once complete. Investment in this project will be structured similar to mezzanine debt with a predetermined annual rate of return but will enjoy the tax benefits of equity versus debt. If for some reason the builder doesn’t exercise their option, the deal becomes even better. It isn’t often we have shorter term investment opportunities but this one will be. We are working on the marketing package and hope to be able share details in the coming weeks.
  • We are excited by the number projects that have been coming across our desks. There are several potential opportunities that have been visited recently and/or are on the schedule to visit this week. If the site visits go as anticipated, we will submit multiple LOI’s by the end of this week.    

 

Current Repositioning Projects:

 

Norman Portfolio

(340 Units, Norman OK)

  • Charleston (160 units)
    • Leased to 83%. A 9% increase from last month.
    • Leasing season is upon us, we are working closely with management to ensure the property is expertly marketed and operating efficiently.
  • Other Complexes (180 units)
    • Leasing is our top priority at these complexes as we work through the transition to the new property manager.

 

Village on the Lake

(160 Units, Oklahoma City OK)

  • Currently leased to 85%, a 3% increase over the last two weeks.  
  • 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%. No change from last month.
  • While we continue to be disappointed with leasing progress at this property we have started to see the property reputation and feedback begin to shift. The third party asset manager has been working diligently with the onsite manager to turn around online reviews on the property, taking the Google rating from sub 2.5 stars to 3.8!

 

Items of Note at our Stabilized Properties:

 

Arrow’s Edge Apartments

(118 Units, Sherwood AR)

  • Occupied at 92%, up 1% since take over.
  • The first month of ownership at this property has gone well. The onsite manager has worked hard to decrease delinquency and educate the residents on the new ownership’s policies and commitments.

 

Sunridge Townhomes

(133 Units, Enid OK)

  • Occupied at 94%, a 3% decrease from last month, but still above market occupancy.
  • Exterior capital improvement work has begun, a full exterior paint, landscape clean up and a large amount of concrete work is giving the property a needed facelift.

 

AE McDonald

(95,310 SF, McKinney TX)

  • A space vacated at the end of March is generating quite a bit of local interest. It is anticipated that we will lease this at or above proforma rates. Occupancy is currently 95%.

 

Other:

  • Our list for those interested in the Altus specific equity raise is growing. Meetings for this opportunity have begun. If you are interested in receiving more information, please reach out to Forrest at fjinks@altusequity.com
  • 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.
  • We just funded a $1,070,000 1st deed of trust loan today and have another loan in the hopper. Please contact us to be put on our short list of lenders if you have interest.

 

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