Mid Month September 2019

Altus Mid-Month Update- September 2019: As our investor list continues to grow, we are working on changing up a few things in how the Altus Mid-Month Update is utilized. We want to focus on disseminating information on deal flow and current repositioning projects, while informing our investor community about up and coming opportunities. Please give us feedback on what you would like to see and how we can continue to improve going forward. We appreciate all your insights!

It has been a crazy busy month with the culmination of 3 acquisitions in the span of 2 weeks, so let’s jump right in to some of the details of what’s happening at Altus:

Recently Closed Transactions:

  • WestPark Industrial Complex- Tupelo, Mississippi: The property consists of 310,667 sq. ft. of multi-tenant industrial warehouse space (100% occupied). We were able to obtain 10-year CMBS debt locked at slightly over a 4% interest rate, which is better than what we had in our pro forma. Investment in this stabilized, cash flowing opportunity filled up in less than 48 hours.
  • Skyline Luxury Apartments- Chico, CA: Altus arranged for the purchase of 5.64 acres of land that has all the discretionary and non-discretionary approvals for the construction of 104 luxury apartments in the demand intense area of Chico. Construction is already well underway with the hope that the first four buildings will be completed and ready to lease by the end of the year.
  • We filled the $4 million raise within the first two weeks, but due to unforeseen circumstances one of our investors had to back out at the last minute, leaving $150k available. This is the first that we have mentioned this opportunity, so accredited investors can contact us for details.
  • Newport Plaza- Oklahoma City, OK: We closed on this 26,000 sq. ft. retail center on 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 and repositioning of the property.

In the Pipeline/Stay tuned:

We are continuously looking for and evaluating new deals for acquisition. If you know of any interesting off-market opportunities (both near and far), we would love to hear from you.

  • 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. Our due diligence uncovered extra repair costs previously undisclosed so we are currently working with the seller to see if those issues can be resolved. If so, we will be closing in early October.
  • We are in contract on five medical office condos in San Marcos, TX (Austin MSA) totaling 12,000 square feet. The seller has not been cooperative in sharing due diligence items, but we continue to work through the process and expect to eventually reach resolution. We already have a LOI in town from a potential tenant for over 20% of the vacant space. Due to the size of this purchase, the investment opportunity in this deal will be structured as debt.
  • We are negotiating on a light industrial building in Tulsa. Recently constructed, it has strong in place cash flow at the current 75% occupancy with substantial upside through filling the remaining space. This could turn out to be an interesting equity play.
  • We have an offer on a small apartment complex in Sherwood, AR, close to a larger multi-family complex we purchased earlier in the year. Due to the size and closing time line any investment in this opportunity will be structured as debt.
  • We currently have multiple other offers on other properties and will continue to keep you all in the loop as things unfold.

Other Noteworthy Items:

  • If you haven’t already heard, Rich Fenske is leading up our Altus Capital private money loans division. Things are starting to pick up steam, so please reach out if you are interested in allocating a portion of your investment portfolio to secured deeds of trust. Here is a snapshot of recent activity:
    • Closed: $1,500,000 loan for Berkeley Warehouse – 50% LTV Purchase 18-month term at 9.5%
    • Closed: $500,000 loan for Murrieta, CA land entitlements – 25% LTV Refinance 12-month term 8.5%
    • Closed: $190,000 loan for San Antonio, TX land – 50% LTV Refinance 12-month term 12%
    • Pending: $91,000 loan for Santa Rosa medical condo – 40% LTV Purchase 24-month term 8.5% (late Sept. close)
  • 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 directly at fjinks@altusequity.com

If you have 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.

 

Best Regards,

The Altus Investment Team