Altus Mid-Month Update
December 2025
As we move into December and bring 2025 toward a close, this feels less like a moment for new narratives—and more like a moment for accountability. Markets have remained noisy, assumptions have continued to shift, and certainty has been in short supply. But execution still matters. And structure still matters. Those themes have shaped our decisions all year, and they’re becoming clearer—not softer—as we head further into this next cycle.
That idea came through strongly in our recent Altus Insight, When Reality Breaks from the Script. This cycle has reminded us that markets rarely unfold the way consensus expects. Plans change. Variables collide. And the difference between durable outcomes and disappointing ones often comes down to disciplined underwriting, realistic assumptions, and the ability to adapt without abandoning fundamentals.
We saw that philosophy put into practice at the end of November with the successful closing of our Lubbock, TX multifamily acquisition. An investment we targeted earlier this year for its strong cash flow and structure is now fully operating—279 units with strong occupancy, fixed-rate assumable financing, and immediate income. While many participants slowed, re-traded, or waited for clarity, Altus remained active—acquiring assets, raising capital, and leaning into opportunities where we saw true risk-adjusted value. The Lubbock Close is one example of that approach translating into execution.
As we wrap up the year, our focus remains on integration and performance—bringing new assets fully online, advancing leasing and operations across the portfolio, and positioning Altus for the opportunities that tend to surface when markets remain unsettled. December isn’t about prediction; it’s about preparation. And that’s where we’re spending our time.
Altus Opportunity Fund – Last Chance
We’re excited to announce the LAST CALL for investment into the Altus Opportunity Fund. Over the past two years, we’ve curated a unique offering designed around our investors’ needs and wants. The Fund will close to new investment on December 31, 2025, and we are now in the final window for both new allocations and add-on investments from existing investors.
For current Opportunity Fund investors:
If you’re already invested and would like to increase your position, this is the final opportunity to do so before the Fund closes to new capital. Many investors are adding to their allocation; if you’d like to explore an additional commitment, please let us know asap.
For those not yet invested but considering an allocation:
If you’ve been following the Opportunity Fund but haven’t yet invested, this is the last window to participate before the Fund is closed to new investors. For those considering an allocation, we can provide the PPM and schedule a brief call to address any remaining questions ahead of the December 31 deadline.
For more information on the Opportunity Fund, click here.
Altus Secured Income Fund: Launched in September, the Altus Secured Income Fund is a new real estate–backed debt fund designed to provide consistent, passive income with meaningful downside protection. The fund offers an 8% preferred return plus 50% of fund-level profits, trued up at the end of each calendar year, with quality upside returns. It will invest exclusively in senior-position loans secured by real estate and provides reasonable liquidity after a short six-month seasoning period. There is sometimes a waiting list as we wait to ensure we can obtain good loan positions, but the wait is well worth the benefits.
Two Property Multifamily Portfolio, Lubbock, TX: In late November, we closed on the acquisition of a two-property, 279-unit multifamily portfolio in Lubbock, Texas—an off-market opportunity in a high-occupancy, supply-constrained submarket. The communities are stabilized and well-maintained, with strong in-place occupancy and long-term fixed-rate assumable financing already in place, positioning the investment to generate immediate and consistent cash flow. With limited new supply in the market and room for organic rent growth over time, this portfolio offers the blend of current yield and long-term upside.
Industrial Warehouse, MS: We continue to make solid progress on multiple fronts at our Starkville Industrial asset. A Fortune 500 tenant has now executed an option-to-lease for a substantial portion of the remaining space, moving us meaningfully closer to a long-term lease that would materially enhance both cash flow and occupancy. The tenant has already committed significant capital toward build-out, underscoring their intent and alignment. In addition, we recently signed a new 30,000-square-foot lease in a second building and are actively negotiating another lease of approximately 40,000 square feet.
In parallel, the sale of a 10,000-square-foot outparcel building is advancing through due diligence, alongside an additional outparcel disposition in process. Together, these transactions are expected to reduce our overall cost basis by nearly 40% without impacting the leasable square footage or original underwriting metrics. Overall interest in the property remains strong, with multiple leasing conversations ongoing.
Highfill Duplexes Phase I, NW Arkansas: : At the end of summer, occupancy sat below 85%, and now—after another strong month of leasing—the property is well past stabilization at 97% occupied. This performance is a testament not only to the work of our regional and onsite management teams, but also to the strength of the market and the conviction of our acquisitions team in the original investment thesis. The refinance has been initiated and is currently in process, with the goal of transitioning the asset into a long-term fixed-rate debt structure through HUD.
Multifamily Construction, Oxford, MS (Development): Elsewhere in the portfolio, we’ve recently seen a similar story play out. This newly constructed multifamily project is already leased to over 90% occupancy for move in later in 2026. The property is currently 67% occupied and cash flowing. This property is also anticipated to be refinanced to HUD permanent debt with the loan able to be finalized once the property passes 85% occupancy.
The Belle’s elevated design, modern finishes, and prime location continue to make it a preferred choice for both new students and residents relocating within Oxford. With current occupancy at approximately 65%, interest continues, including renters in nearby communities who are seeking a more refined living experience. In response, we are actively evaluating enhancements to the amenity package, including the potential addition of a pool area, to further elevate the resident experience and further strengthen long-term leasing.
Oxford, MS: Multi-Family Project
If you have a portion of your investment portfolio that is earmarked for debt, please reach out so we can add your name to our hot sheet. If you are trying to figure out the capital stack for your own project, feel free to reach out and we are happy to brainstorm possibilities with you.
Are you invested in any other real estate or debt investments that are struggling? We are actively looking for investment opportunities and have the ability and creativity to often be able help in challenging situations. Please contact us if you have or know of such situations.
For those looking to explore equity investments or private lending opportunities, please contact Chad Richards (crichards@altusequity.com), our VP of Investor Relations, at (707) 227-4422 or reply directly to this email. We’re here to help you navigate the investment landscape and identify opportunities that align with your goals.
Happy Investing!