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Altus Mid-Month Update

April 2021

April is shaping up to be a transformative month for the Altus investment community. On the heels of closing multiple private money loans, we are on the cusp of raising equity for some very exciting upcoming opportunities. Big things are shaping up at Altus, and we appreciate all those that are along for the ride.

Activity Abuzz:

  • QOZ Industrial Development in Taylor, TX (Austin MSA): The minimum raise needed to kick off this project was reached in February and we are rapidly approaching the full targeted raise. Two leases totaling close to 40,000 sq ft should be signed by the end of the week (~$350,000 of annual NOI). This is a great opportunity for investors with expected gains in 2021. The total development will consist of close to 1 million square feet and be comprised of various industrial uses. The current tract is 10 acres and will include over 200,000 sq ft across 6 light industrial buildings. The buildings will be constructed over 3 phases, with the site work already in process and first phase vertical construction starting in the coming weeks with the expectation the first building will be completed this summer. The 2nd and 3rd phases will be constructed as the market demands. Investors will obtain 100% of all cash flow up to an annual average 14% cash on cash return, plus a true up to a 14% ten-year IRR at investment termination (either redemption or property liquidation). This transfers the risk away from the investors and onto the sponsors.
  • New Industrial (Charleston, SC) and New Multi-Family (KC MSA) Development: We are preparing to raise equity to invest in the pre-construction of a new 1.4m sq ft. industrial development in the red hot market of Charleston, SC, and the construction of a 399 unit luxury apartment complex located in a 200 acre master planned development in a high end Kansas City, MO suburb. Investments made in this opportunity will be for both projects, therefore spreading risk across geographic locations and property types. Equity raised will be used to fund the pre-construction costs of both development projects. Returns on the invested equity will accrue up until the start of construction, and will then vest into the project at the increased accrued amount. The final investment structure has yet to be determined but returns are anticipated to be considerably higher than our normal offerings due to the nature of the investment.
  • Sacramento Strip Retail: While retail has generally been panned by real estate investors, we have remained bullish to specific types of retail, including surface centers in well located areas with businesses that can’t be “Amazoned”. We have a center in Sacramento in contract that fits that profile, and we are moving forward with the purchase. At the negotiated price, the property will provide investor yields returns north of 7.5% from the time of purchase.
  • Miscellaneous: Negotiations are ongoing for the build out of a multifamily project in Northern California and the purchase of a light industrial property in the Austin metro. If successful we will be able to share those details in the coming months.

Altus Asset Sale and/or Refinance

  • Sold: Multi-Family: We recently closed on the sale of two small multifamily properties in the Norman, Oklahoma market; an 18 unit and an 8 unit. Both properties were originally purchased as part of an eleven property portfolio, rehabbed, stabilized, and then offered for sale. Since the close of this sale, we listed another property from that portfolio for sale with the first buyer tour scheduled for later this week.
  • In Contract: Multi-Tenant Industrial For Sale: The original buyer that had been in escrow to purchase our property in Florida tried to re-trade the deal at the 11th hour so we cancelled escrow. We had multiple new (and higher) offers right away and we are now in contract with a new buyer that is in the process of performing their due diligence.
  • More Multifamily For Sale: Our investment partner in a two-property package (194 units) we purchase several years ago has decided to sell. Both properties are in contract to sell.

ACG (Altus Capital Group): Private Money Lending:

The last forty-five days have been among the busiest our lending business has experienced, with several loans funded and closed. After such a busy period, activity is taking a breather while we turn back to filling our pipeline. We hope to have more loans to offer to our investors soon.

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.