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Altus Mid-Month Update

February 2024

Fund raising is in full swing, and we are in contract on multiple different projects for our new Altus Opportunity Fund. Nearly all of our equity investment workflow and efforts will be dedicated to the new fund for the foreseeable future, so if you haven’t invested yet, but you have interest in doing so, please reach out to Chad Richards (crichards@altusequity.com) to inquire. You can also click here for a fund overview.

Activity Abuzz:

Multifamily Construction- Oxford, MS: Horizontal construction is underway for a 98-unit multifamily project in Oxford, MS (home of Ole Miss). We have partnered with a group in which we have a long-standing relationship that has boots on the ground and who will be overseeing the project. We have signed term sheets with both a construction lender and our equity partner.  We anticipate the “general partner” portion of this project will be included in the Altus Opportunity Fund.

Amazon Distribution Warehouse- CA: We are well into negotiations on an Amazon build-to-suit distribution project. The project will consist of ground up construction of a 39,000 sq. ft. distribution warehouse leased to Amazon. We anticipate this project will be included in the Altus Opportunity Fund.

Industrial Warehouse- MS: We are in contract to purchase a ~350,000 sq. ft. distribution warehouse for $12 per square foot, which is significantly below replacement cost. We anticipate this project will be included in the Altus Opportunity Fund.

Multifamily Project- TX:  Three hundred and seventy-five affordable housing units were brought to us by a broker because the seller ran into difficulties completing their business plan and was at risk of losing substantial investment equity. We have agreed to terms for Altus to invest in the project in a preferred equity position, with us taking over the responsibility of the project, and the existing owner staying in the project as the common equity. We anticipate this project will be included in the Altus Opportunity Fund.

Highfill Duplexes Phase I (Build-For-Rent)- NW Arkansas:  Vertical construction of the first 100 units (out of a total of294) is well underway, and the horizontal construction on the remainder of the subdivision is complete. Twenty-two units have received their certificate of occupancy, leasing efforts are proving successful, and all remaining units are expected to have construction completed in the spring. We just accepted an offer to sell 70 lots from the subdivision to another developer, which should result in a big win for investors. It is anticipated that the majority of investors will 1031 their proceeds into the Altus Opportunity Fund.

New Industrial (Charleston, SC) Construction and Lease-up: Construction is complete at our Camp Hall industrial project. The final certificates of occupancy are expected to be issued in early April. Leasing efforts have commenced for the three buildings totaling a little over 1.4 million square feet.

Altus Opportunity Fund: As mentioned above, this fund officially launched January 2nd, 2024. We are actively taking reservations and investment into the Fund. The Fund has already made its first investments with several more expected in the pipeline.

NPL Fund: This fund is officially launched as well. The Fund has already purchased 32 loans and will continue to add to its portfolio as additional equity is added to the Fund. We have already completed the first workouts in the loan portfolio, and the initial returns are higher than we originally modeled. Investment reservations are currently being accepted.

ACG (Altus Capital Group): Private Money Lending:

There are plenty of opportunities in our pipeline for investors/lenders to invest in private debt (both first and second DOTs). One example (of many) of a recently completed loan was a 1st position loan secured by entitled apartment land (CA). Loan to value below 33%. Interest rate 11%. We have several more loans that are in the pipeline, which are set to close in the coming weeks.

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.

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.

Happy Investing,

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.