Mid Month January 2020

Altus Mid-Month Update- January 2020

We ended 2019 with a bang by successfully closing on a QOZ property in Austin, TX (MSA), and kicked off 2020 in similar fashion by closing on a multi-tenant industrial property in Tulsa, OK (MSA). We have several other deals in the works, so stay tuned as opportunities unfold throughout the year….

Recently Closed:

  • Equity Investment Opportunity: We just closed 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 of 58% occupancy and a signed lease for an additional 20,000 square feet, which will take the occupancy to over 92%. This was offered as an equity investment opportunity for accredited investors. This purchase was finalized the first week of January.
  • QOZ/ Equity Investment Opportunity: Just before the new year we purchased 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, we are arranging for the development of the first tract of land for a cold storage facility (Letter of Intent in hand, final lease negotiations in motion), 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 completed the purchase in late December to ensure investors could maximize the QOZ step up in basis benefit that reduced from 15% to 10% at the end of 2019.  

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.

Activity Abuzz:

  • Northern California Multi-Tenant Development Opportunity: We are negotiating terms with a developer we have worked with in the past to offer an opportunity to invest in the development of 100+ multi-family units in a market with huge demand. If we are able to come to terms, investment will be raised as preferred equity in a similar structure as the Chico Skyline Apartments that are currently under construction.
  • 2 Altus Assets Listed for Sale: After closely evaluating the optimization of each property, Altus, along with our investors, have decided to take the Charleston Apartments (Norman, OK) and the Brixton Apartments (Beech Grove, IN) to market. Listing brokers have been hired and the properties are officially hitting the market starting January 20th at the NMHC (National Multi-family Housing Council) Conference.
  • 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 has invested most the proceeds in other Altus opportunities, and will deploy the remainder in the coming weeks.

ACG (Altus Capital Group): Private Money Lending:

Examples of Recently Closed Private Money Loans:

  • $265,000 1st DOT for Sacramento Fix & Flip: 50% ARV – 12-month term, 8.5% (Mid December)
  • $300,000 1st DOT for Ukiah Pharmacy: 50% LTV - Refinance 24-month term, 8.5% (late December)

Upcoming Lending Investment Opportunities:

  • $240,000 1st DOT for Guerneville Hotel: 9% LTV - 24-month term, 10.0% (mid-January)
  • $800,000 2nd DOT for Healdsburg 16 acres of Vineyard with 3 rental properties 24-month term 13.5% (term sheet)

Rich Fenske heads up our private money financing sister company ACG (Altus Capital Group).  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.

 

Cheers to a healthy and prosperous 2020!

The Altus Investment Team

 

This message is not an offer or solicitation of an offer to buy or sell any securities.  Offers are made only by prospectus or other offering materials.  The information contained herein has been obtained from a variety of sources which are believed to be reliable, but have not been independently verified, and may be subject to change without notice.  To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law.