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Altus Mid-Month Update

June 2024

With kids getting out of school and fun activities and travel plans well under way, summer is officially here. June has been a busy month in acquiring assets for the Altus Opportunity Fund. We closed on an apartment construction project in a Qualified Opportunity Zone (QOZ), we acquired a 350k sq. ft. multi-building distribution warehouse project at an insanely low basis that will be cleaned up and leased, and we have two senior loan and two participatory loans scheduled to close before the end of the month. We are bullish on all the projects, and we are excited about the potential returns for our investors.

The Opportunity Fund is off to a great start with amazing support from our investing community, so thank you to everyone that has invested. We are starting to open up the opportunity to other investors, so if you know anyone that could benefit from investing in the fund, please let Chad Richards (crichards@altusequity.com) know.  If you would like to review the Opportunity Fund or the AE HGF NPL Fund investment decks you can access info at this link and this link respectively.

See below for a recap of some of our projects underway…

Activity Abuzz:

Multifamily Construction, Oxford, MS: Progress continues on the 98-unit multifamily project. We’re nearing completion of the horizontal phase and vertical construction is set to begin shortly. The Altus Opportunity Fund is invested directly in this deal as the General Partner (GP).  There is currently an opportunity for investors to invest in an LP capacity. This project is in a Qualified Opportunity Zone and it is well underway in the construction process, with entitlement risk being completely eliminated. If you have taxable gains that you would like to defer until tax year 2026, want to secure tax-free returns on a solid investment, and can benefit from accelerated and non-recaptured depreciation, please contact us for details.

Amazon Distribution Warehouse, CA: Final agreements are being negotiated for the Amazon distribution center project. We’re excited about this build-to-suit venture and the return/risk profile of the project. This project will go into the Opportunity Fund.

Industrial Warehouse, MS: We just closed on a 350,000 sq. ft. (multi-building) warehouse, and all signs point to this being a fantastic purchase. Between the existing improvements and additional land for expansion, this appears to provide almost unheard-of intrinsic value. This is exactly what we have in mind when evaluating projects with HUGE upside. The property was acquired by the Altus Opportunity Fund.

Highfill Duplexes Phase I, NW Arkansas: Construction for the first phase (100 units) complete, and leasing is ongoing. We have closed on the sale of a separate 70 lots, and we are evaluating the investment structure for the second phase of construction.

New Industrial, Charleston, SC: The Camp Hall industrial project is complete other than an off-site lift station that is the responsibility of the local government. Leasing activity is underway for the 1.4 million square feet of space.

Industrial, Austin TX: An offer has been accepted and due diligence well underway for our TIC interest in the property. The transaction is not scheduled to close until Q3 or Q4, but the buyer has passed through a $1 million in non-refundable deposit.

Industrial, Dallas/Fort Worth TX (Sale): Letters of intent have been negotiated on this property and the purchase and sale agreement is close to finalized. Most due diligence has been provided to the buyer. This property was not listed for sale, but the offer was strong enough it convinced us to move forward.

Fund Updates:

Altus Opportunity Fund: As mentioned above, we continue to execute on our fund acquisition strategy. Momentum in building with increased investment inflows, and the fund’s diverse portfolio is showing promising early results. For more information on the Opportunity Fund, click here.

NPL Fund: The Non-Performing Loan Fund outperformed expectations in Q1, and again in Q2. There has been significant progress in loan acquisitions and workouts, indicating robust potential for returns to our investors.  For more information on the NPL Fund, click here.

ACG Updates (Altus Capital Group) – Private Money Lending:

Our lending division remains active, having closed on multiple private money loans in the last few weeks, and many more in the pipeline.

As always, opportunities are first offered to our active investor interest list. 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.

For those looking to explore equity investments or private lending opportunities, please contact Chad Richards (crichards@altusequity.com), our Director 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.

Warm Regards,

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.