Altus Mid-Month Update
July 2025
As we move into the second half of 2025, the real estate landscape continues to reflect a market in transition. Economic uncertainty persists—elevated rates, sticky inflation, and global instability continue to cloud visibility—yet opportunity remains for those investors who stay focused and adaptable. We’re seeing this play out across our portfolio, where multifamily leasing remains uneven, with some markets holding steady while others continue to feel pressure from affordability concerns and shifting renter behavior. Commercial assets, meanwhile, remain more affected by macroeconomic and geopolitical crosscurrents.
We dug deeper into these themes in our end-of-May Altus Insight, “Tariffying Assumptions,” which explored how shifting trade policies and structural changes are reshaping the real estate investment landscape. We followed that with last month’s Insight, “Conviction in Formation,” where we reflected on how evolving market dynamics—and internal recalibration—are changing the way we model assumptions, evaluate risk, and prioritize cash flow. Our conviction is growing that strong in-place yield may be the overlooked advantage of this cycle.
Against this backdrop, we’re excited to launch the Altus Secured Income Fund—our newest vehicle designed to deliver stable, fully collateralized returns through first-position real estate debt. As traditional credit markets remain constrained, we believe this fund will be well-timed to serve both borrower demand and investor appetite for income with downside protection.
Below, you’ll find updates on fund performance, key portfolio developments, and what we’re seeing as we look toward the second half of the year.
Altus Secured Income Fund – Now Accepting Reservations
We are preparing to launch the Altus Secured Income Fund, a new real estate-backed debt fund designed to offer consistent, passive income with meaningful downside protection. The fund will provide an 8% preferred return plus 50% of fund-level profits, with total returns projected in the 9–10% range. It will invest exclusively in senior-position loans secured by real estate, and feature reasonable liquidity after a short six-month seasoning period.
While our original target was a July launch, finalizing legal documentation and coordinating the transition of select loan assets has shifted the timeline slightly. The formal launch will be September 1, 2025.
We have officially opened the reservation process. If you would like to reserve an allocation, please reply to this email.
See below for a recap of some of our projects underway:
IIndustrial Warehouse, California (Sold): We’re pleased to share that the sale of Carousel Industrial Warehouse closed in early July, marking a successful conclusion to one of Altus Equity Group’s long-term industrial investments.
Acquired in late 2016 and held for over eight years, Carousel delivered an estimated 23.5% internal rate of return (IRR) to investors. That level of performance is notable not only for its strength, but also for being achieved over a relatively long hold period—during which Altus executed its business plan through market cycles and operational challenges.
This successful exit also reflects well on Altus’s disciplined approach to dispositions. While we remain active on the acquisition front, we are equally committed to exiting assets when financial and market conditions align to produce strong outcomes for our investor community.
Industrial, Dallas/Fort Worth, TX: Our new brokerage team has been actively working the market and generating momentum. They’ve secured multiple property tours and have already received a few Letters of Intent. We anticipate executing new leases in the coming weeks based on current activity.
Multifamily Portfolio, Texas (Purchased): Since closing the deal this spring, the portfolio continues to perform well, across all six properties. The execution of the business plan supporting the proforma is underway, with selective unit upgrades being implemented as units become available to do so.
Multifamily Construction, Oxford, MS (Development): Construction on the 98-unit multifamily project in Oxford remains on schedule for completion ahead of the first lease commencements in August, outperforming the original investment pro forma. Building A continues to progress with corridor carpet installed on all upper floors, shutters complete, and elevator installation nearing completion. Building B is also nearing completion, with final paint, cleaning, and detail work underway. Site improvements, including sidewalks, curbs, and paving preparation, are progressing smoothly.
Market rents continue to exceed pro forma projections, positioning the project for strong performance and long-term investor value.
Industrial Warehouse, MS: Lease-up efforts continue. We’re expecting a signed LOI with a major multinational tenant after nine months of significant negotiations. This lease will absorb a significant portion of the vacancy. Discussions for smaller spaces are progressing. Notably, we’ve executed an agreement with Amazon for a portion of the exterior space, reflecting continued demand and momentum across multiple tenant segments.
New Industrial, Charleston, SC: The 1.4+ million square foot project is complete. Marketing and leasing activity remains ongoing.
At the end of this year we will be closing the Opportunity Fund for new investment.
For those that are not already invested in the Opportunity Fund but are considering doing so, please click the link below to watch the replay of the Opportunity Fund webinar.
You can click on the picture below to view the replay:
Fund Updates:
Altus Opportunity Fund:Investments into the fund are ongoing, and Year 1 performance exceeded pro forma expectations for those investors that were in from the beginning*—a strong validation of our strategy. The fund is scheduled to close at the end of this year, so if you’re interested in investing, please reach out. For more information on the Opportunity Fund, click here.
ACG Updates (Altus Capital Group) – Private Money Lending: Our lending division remains active with a pipeline of loan opportunities across several different states. Loan funding opportunities are presented first to those who actively let us know they are looking to fund private mortgages or deeds of trust. For more information on Altus Capital Group, click here.
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!
The Altus Equity Team
Investors@altusequity.com
(707) 932-5887
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.
*Past performance is not indicative of future results