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Altus Mid-Month Update

November 2021

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The holiday season is upon us, and Altus is grateful for all the activity we have in our pipeline. The four projects we are currently working on are taking a large amount of our attention, so while we continue to look for and underwrite new opportunities, we are highly focused on executing on the existing deals. See below for more details on Altus deals in various stages.

Activity Abuzz:

Highfill Duplexes: After the strong success of the last duplex project we did in the Northwest Arkansas MSA, we dug in looking for additional opportunity and were able to tie up land just outside of Bentonville with an agreement for the seller to obtain all entitlements for 140 duplexes (280 units) prior to our purchase. The entitlements are complete, and bids are in process with an expected closing on the purchase and commence of the project scheduled for late November. It appears we will be rolling 1031 funds into the purchase and partnering with an institutional investor for the rest of the equity. It is unlikely we will be raising any additional equity for this project. The purchase is being made through an E.A.T. 1031 structure, which is the first time we have ever utilized this structure. Thanks to our tax and accommodations team for helping us through the process. This purchase is scheduled to close any day now.

Oxford QOZ: Legal documentation is ongoing for Altus to buy into a fully entitled master plan QOZ development in the town of Oxford MS (Forrest’s favorite small town, and the home of Ole Miss). The development consists of up to thirteen individual construction projects that will be offered to investors as they come to fruition. We anticipate raising funds for the various phases, possibly starting later this year, and continuing into 2022.

New Industrial (Charleston, SC) and New Multi-Family (KC MSA) Construction and Lease-up: We closed out the equity raise in July for the investment in the pre-construction of a new 1.3m sq ft. industrial development in the Charleston, SC MSA, and the construction of a 399-unit (estimated) luxury apartment complex located in a 200-acre master planned development in a high-end Kansas City, MO suburb. Investments made in this opportunity are for both projects, therefore spreading risk across geographic locations and property types. Equity raised will be used to fund the pre-construction costs of the two projects, both of which already have entitlements in hand. Returns on the invested equity will accrue at 20% annual interest up until the start of construction; and will then vest into the project at the stepped up, accrued value. The ultimate investment structure is in the works and is anticipated to produce returns considerably higher than our normal offerings due to the nature of the investment. We are negotiating term sheets for both the debt and institutional equity for the Charleston project and expect to have the term sheet in hand for the equity for the Kansas City apartments in the coming weeks.

Debt Liquidity Fund: Due to increasing demand from our investors to be able to invest into a safe, liquid investment vehicle, we created the Debt Liquidity Fund. This provides investors with the opportunity to earn a solid monthly yield (4% per annum) on funds that may otherwise be sitting around in a CD or a bank account not earning much interest. The fund is comprised of a portfolio of real estate loans that are in 1st lien position and are all below 50% LTV; with additional capital invested by Altus’s shareholders in a junior (first loss) position for further collateral. This is an open-ended fund that allows investors to redeem their position (or a portion of their position) with 30-days-notice. We are currently fully funded but there will continually be opportunity for investors to place funds as the fund is able to identify qualified loans, so let us know if you would like to be added to the wait list. We anticipate additionally opportunity to place funds will open up in the coming days/weeks.

ACG (Altus Capital Group): Private Money Lending:

Last month we funded a large preconstruction land loan and have two smaller construction loans in process. Additionally, we are underwriting a low leverage second on a care facility in New Mexico and a purchase loan for an industrial and development property in the Austin metro. As always, opportunities are first offered to our active investor interest list. Please reach out to us if you have funds for lending and would like to be added to the list.

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.

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