Mid Month August 2019

I (Chad Richards) have taken over the reins from Ali Negus in providing investor updates, and will continue to do so going forward. I'm excited to collaborate with you, so please don't hesitate to reach out to me any time to discuss current or future investments. The office has been teaming with activity all Summer long and we have a lot of great opportunities in the pipeline that we are excited to share with you.

In the Pipeline:

  • The 310,667 sq. ft. Westpark multi-tenant industrial property in Tupelo, MS continues to progress towards close. It should provide excellent and stable cashflow from the date of purchase, while still maintaining a possible benefit from future development on the bare land included in the purchase. The marketing package is expected to be sent out next week and we will begin taking reservations right away.  If you would like to ensure that you receive the investment summary, please contact me via email at crichards@altusequity.com.
  • We are in contract on a mid-size apartment complex in Huntsville, AL. 16 units on the property were recently damage due to fire, which presents us with a below market opportunity to enter Huntsville, which is one of our main target markets. Two of our team members will be onsite next week for due diligence. We hope to add additional assets in this market as we are currently evaluating additional opportunities.
  • In previous months we mentioned the apartment project we are working on in Chico. We are partnering with a builder on the construction of 104 Class A apartment 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. The project is fully reserved and back up reservations are being taken. The close date has been pushed back to the week of August 19th.
  • We are in contract on five medical office condos in San Marcos, TX totaling 12,000 square feet. Two of our team members will begin onsite due diligence next week. We have long loved the Austin MSA but rarely have been able to find properties with returns that fit our profile. 
  • We are currently evaluating and offering on other opportunities in MO, AL, and OK as well. More information to come!  

 

Current Repositioning Projects:

 

Newport Plaza

(26,000 SF, Oklahoma City OK)

  • We closed on this retail center July 31st! After months and months of negotiations, a fire, and a cannabis lease signed without our permission, we were able to get the deal done.
  • A full façade renovation is planned to begin by mid October. This will be followed by a full re-tenanting.

Norman Portfolio

(340 Units, Norman OK)

  • Charleston (160 units)
    • Occupied at 92%, a 5% increase from last month and preleased to 95%. We anticipate hitting 95% occupancy mid-August with the current move in and move outs planned.
    • Refinance options are in the works now that we have hit over 90% occupancy.
  • Other Complexes (180 units)
  • Leasing momentum continues to fluctuate at these properties. Joan is working extremely hard to ensure that these last few weeks of leasing season is taken advantage of and that we get residents into the units.

Normandy Place Apartments

(80 Units, Little Rock, AR)

  • Leased to 70%, no change from last month.
  • We had an extremely positive week of 5 approved applications the week before last, we really thought the marketing plan was hitting the mark. However, leasing slowed back to a halt last week. We continue to have weekly calls to encourage the onsite staff to keep up momentum. 

Items of Note at our Stabilized Properties:

McDonald Plaza

(McKinney TX)

  • One renewal was signed last month at this location. It was an 11% increase over the previous rate and slightly above proforma levels.

Other Items:

  • The Altus specific equity raise first round of funding closed July 1st. There are a few additional investments trickling in as paperwork is completed which will be included in a second round of funding. 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 of investors that receive first look at new opportunities. Loan opportunities have picked up over the last couple weeks with three loans currently in the works that are expected to close in the next week.

If you have any interest in discussing 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.