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Altus Mid-Month Update

October 2020

We are in the final stages of taking reservations for investment in our multi-family opportunity in NW Arkansas. Meanwhile, our acquisitions team has been busy unearthing new investment opportunities that we will be sharing with our investment community in the coming months. We are finding that with creative deal structuring, there are some attractive deals to be obtained. We remain interested in properties with solid real estate fundamentals, so let us know if something comes across your desk that looks promising.

Activity Abuzz:

  • NW Arkansas Multi-Family: We are in the final stretch of raising equity for two multi-family properties in a booming NW Arkansas community with only a few hundred thousand dollars of reservations remaining available. The first property consists of 100% occupied, new construction duplexes and a couple groups of townhomes on individual parcels. The second property is a QOZ (Qualified Opportunity Zone) development from the same owner/developer as the other property. All the entitlements are in place and construction has started. We have a small investment amount available, and anticipate completing the reservation sometime this week.
  • 130 Unit Multi-Family Development in Santa Rosa: This 130-unit apartment build out project is continuing forward, although more slowly than preferred due to the current impacts of the COVID virus on the working efficiencies of local government employees. No material changes in the status as the project approval letter from Fish and Wildlife is still anticipated to be received around mid-November. Pricing for the improvements are being obtained and negotiated. The long-term expectation is that the project will be refinanced to HUD 35-year fixed rate financing at completion, and we will offer investors a long-term equity investment opportunity. We will continue to share details as they become available.

Altus Asset Purchase and/or Refinance:

  • Construction loan: Taylor Industrial QOZ: Development and Construction of our QOZ cold storage project in Taylor Tx (Austin MSA) is underway with initial improvements being paid out of cash on hand. The construction loan has been completed and construction is barreling forward. The tenant is anxious to receive the space as their business is growing rapidly. Additionally, because of market demand, we are now planning to build out the second ten-acre lot sooner than we originally anticipated. We are in the process of starting a second QOF to fund some initial spec development so we have product ready to lease. A marketing package will be available in the coming weeks.
  • Multi-family for sale: We currently have an 18 unit multi-family property listed for sale in the Norman, Oklahoma market. This property was originally purchased as part of an eleven property portfolio, rehabbed, stabilized, and now sold.

ACG (Altus Capital Group): Private Money Lending:

Though the Asset Based Lending market slowed as a result of the shutdown, it is starting to come back to life with more loan pricing requests. We anticipate that there will be increasingly more opportunity in the coming months. With local banks and institutions tightening up their lending requirements, we feel it is an opportune time to launch a debt fund to step in and assist borrowers that will be searching for alternative financing. There will be ample opportunity for investors to invest in the Altus Debt Fund soon. Stay tuned for details. Loan currently being worked on:

  • Mill Valley SFD – This is a $3 Mil second loan behind a low interest rate first, with a combined loan to value of 65%. The expected interest rate is a little over 10%. Due to complexities of the ownership and debt structure progress has been slow. Assuming those issues are able to be understood and resolved we will begin to raise funds in the coming weeks.
  • San Rafael Land Approved for Senior Housing – This is a $6.5 Mil debt request at approximately 50% loan to value (LTV). While it is a possibility that a single lender will fund the entire loan amount, it is more likely that the loan is broken into a high-quality lower interest rate first (25% LTV) and higher interest rate second position loan.
  • Due to experience in raising debt funds, Altus Capital has been hired as a consultant to help a rapidly growing business obtain debt to fund inventory purchases. The company currently has 100% of their inventory presold and are in desperate need for funds to be able to pay for the third-party factories to ramp up production of their product. The minimum loan amount has been met and the maximum loan amount is close to being successfully raised.

If you have interest in discussing 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.