Altus Mid-Month November

Altus Mid-Month Update- November 2019

As we wind down 2019 and head into the holiday season, our acquisitions team has been busy lining up multiple property closings in advance of year end. Some of these purchases will be funded with equity, and a couple others will use debt investment. Feel free to contact us for additional information.

In the Pipeline:

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.

  • Lending Opportunity: We are in contract on a mid-size apartment complex in Huntsville, Alabama. 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. Opportunity to invest in debt in the form of a 2nd DOT with an estimated 24-month term. Closing should occur in early to mid-November. FUNDED

  • Lending Opportunity: We are in contract on eight medical office condos in San Marcos, Texas (Austin MSA) totaling 12,500 square feet. Due to the size of this purchase, the investment opportunity in this deal will be structured as debt by way of 2nd DOT with an estimated 24-month term. Closing should occur in early December. ACCEPTING RESERVATIONS

  • Equity Investment Opportunity: We are in contract on a 65,900 sq. ft. multi-tenant industrial building in Tulsa, Oklahoma. Recently constructed, it is cash flow positive and has upside with the purchase valuation based off the current 58% occupancy. We have already received substantial interest in leasing out the remaining space. This will be offered as an equity play to investors, with an estimated closing in early January. COMING TO MARKET IN THE NEXT FEW WEEKS

  • QOZ/ Equity Investment Opportunity: We are in contract to purchase 81.82 acres of land in a Qualified Opportunity Zone (QOZ) in Taylor, Texas (Austin MSA). In conjunction with a development partner local to the area, Altus is arranging for the development of the first tract of land for a cold storage facility (Letter of Intent in hand), which has outgrown its current facility. The initial building is estimated to be around 25,000 sq. ft., with the ability for the tenant to expand to 1000,000 square feet. As the rest of the property is developed over the coming years the total project size could grow to between 800,000 and 1,000,000 square feet. We are scrambling to get everything in place to allow for funding before the end of year so investors can maximize the QOZ step up in basis benefit that reduces from 15% to 10% after December 31st.  COMING TO MARKET SOON

We currently have multiple offers on other properties and will continue to keep you all in the loop as things unfold.

Recently Closed Transactions:

  • WestPark Industrial Complex- Tupelo, Mississippi: The property consists of 310,667 sq. ft. of multi-tenant industrial warehouse space (100% occupied). The property is stabilized, property management is in place, and has already started generating returns for investors.
  • 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 for occupancy in Q1 2020.
  • Newport Plaza- Oklahoma City, OK: We closed on this 26,000 sq. ft. retail center on July 31st. Permits for a full façade renovation are expected to be obtained by year end with the hope construction will be complete by the end of Q2, 2020. This will be followed by a full re-tenanting and repositioning of the property.

Altus Capital Group (Private Money Lending):

Rich Fenske is leading up our ACG (Altus Capital Group) private money loans division. There are loans in the pipeline, so please reach out if you are interested in allocating a portion of your investment portfolio to secured deeds of trust or have a property that needs funding.

If you have interest in discussing any of these 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