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Altus Mid-Month Update

March 2024

As we advance into spring, activity within Altus continues to accelerate. Our Altus Opportunity Fund is gaining traction, and we’re seeing a surge in interest and investment. Multiple projects are advancing, the amount of interesting opportunities is increasing, and we continue to focus on operational effectiveness across the organization.

Nearly all of our equity investment workflow and efforts will be dedicated to the new funds for the foreseeable future. If you haven’t invested yet, but you have interest in doing so, please reach out to Chad Richards (crichards@altusequity.com) to inquire.  Additionally, if you would like to review the Opportunity Fund or the AE HGF NPL Fund investment decks, follow this link and this link respectively to receive a copy for review.

We have numerous deals in the works. Read below for a snapshot of our current activities:

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. This project, part of the Altus Opportunity Fund, though there may also be opportunity for direct investors by LPs if there is interest.

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.

Industrial Warehouse, MS: Due diligence continues on the 350,000 sq. ft. warehouse but thus far 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.    We are targeting a May 2024 closing and this project will represent another addition to the Altus Opportunity Fund.

Multifamily Project, TX: After several days of our due diligence team being on-site and in the market we have terminated our contract for this project. We were extremely excited about the opportunity and the investment structure we had negotiated, but it is always better to walk away than proceed with a project that doesn’t have a strong probability of success. Very little money is ever lost by not investing in a project. This example showcases the importance of thorough due diligence inspections.

Highfill Duplexes Phase I, NW Arkansas: Construction for the first phase (100 units) is nearly complete and leasing is ongoing. We accepted an offer on 70 of the lots at substantial gain, with that transaction set to close early in April. We are in the process of determining when we will start the second phase of construction.

New Industrial, Charleston, SC: The Camp Hall industrial project is close to complete with full completion of the three buildings phased over April and early May. Leasing activity for the 1.4 million square feet of space is ongoing.

 

Fund Updates:

Altus Opportunity Fund: Momentum continues to build with increased investment inflows. The fund’s diverse portfolio is showing promising early results, aligning with our strategic investment thesis.  For more information on the Opportunity Fund, click here.

NPL Fund: The Non-Performing Loan Fund is outperforming expectations, with significant progress in loan acquisitions and workouts, indicating robust potential returns.  For more information on the NPL Fund, click here.

 

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

Our lending division is experiencing robust demand. With broader tightness in the debt markets pushing borrowers towards private lending, private lenders have been able to fund loans with strong collateral and excellent interest rates. Recent fundings have been across a range of real estate collateral types and locations.  As both borrowers and lenders, we are confident in our ability to structure loans in such a way to benefit both borrower and lender.

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.

As we progress through 2024, Altus remains focused on sourcing and managing high-quality investment opportunities.

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.

 

Here’s to a prosperous March!

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.