Mid Month December 2019

Altus Mid-Month Update- December 2019

The holiday season is upon us, excitement is in the air, and the office is buzzing with activity. The hard work our acquisitions team has put in all year long is bearing fruit in the form of multiple property closings around year’s end.  As always, please feel free to contact us for additional information.

In the Pipeline:

  • 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 and a signed lease for an additional 20,000 square, which will take the occupancy to over 90%. This will be offered as an equity play to investors, with an estimated closing the first week of January. ACCEPTING RESERVATIONS
  • 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 and rough draft of lease complete), 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 100,000 square feet over the next 5 years. 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 scheduled to complete the purchase on December 20th to ensure investors can maximize the QOZ step up in basis benefit that reduces from 15% to 10% at the end of 2019.  FUNDED/ACCEPTING RESERVATIONS
  • Equity Investment Opportunity: We are one of two remaining buyers still in play for a 200 unit apartment repositioning located in Oklahoma City, where we have considerable experience. It is a distressed sale with highly structured offer requirements, but solid upside if we can comply with the requirements and win the purchase. Forrest was in Oklahoma City this past week and met with the broker to try and increase our chances of winning the purchase. STAY TUNED

We currently have multiple offers on other properties and will continue to keep you all in the loop as things unfold. If you know of any interesting opportunities (both near and far), we would love to hear from you as well.

Other Activity:

  • Altus Multi-Tenant Income Fund: We recently refinanced one of the properties in the fund (Villagio) with the intent to reinvest the proceeds to further diversify the fund. The appraisal valued the property 111% higher than the purchase price and the cash out proceeds were 150% of the original investment (with more remaining equity than original investment still in the property). The Fund is using the proceeds for investment in other Altus opportunities.

ACG- Altus Capital Group (Private Money Lending):

Recent Closed Private Money Loans:

  • $360,000 1st DOT for Santa Rosa Fix & Flip: 62% ARV 12-month term 8.0% (closed)
  • $500,000 2nd DOT for Huntsville, AL Apartments: Altus owned – 24-month term 13.5% (closed)
  • $265,000 1st DOT for Sacramento Fix & Flip: 50% ARV – 12-month term 8.5% (closing Dec 17th)

Upcoming Lending Investment Opportunities:

  • $300,000 1st DOT for Ukiah Pharmacy: 50% LTV - Refinance 24-month term 8.5% (late December)
  • $700,000 2nd DOT for Berkeley Automotive: 60% CLTV - Business Purpose 24-month term 10% (early January)

Rich Fenske heads up our ACG (Altus Capital Group) private money loans division. Let us know 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 equity or lending 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.

 

Happiest of Holidays!

The Altus Investment Team

Forrest, Chad, Rich, Amy, Mark, Andy, Joan, Sarah, and Lauren