Altus Equity Group Achieves Remarkable Sale of Ukiah's Carousel Warehouse Amid Market Challenges

Altus Equity Group Inc. has officially announced the sale of the Carousel Industrial Warehouse located in Ukiah, California, marking a significant achievement in the current real estate climate. This successful transaction underscores Altus’s capabilities to generate solid returns for its investors, despite the challenging conditions prevailing in the real estate sector today.

In June, closing the sale as planned, Altus managed to execute its investment strategy effectively, which was initially established well over eight years ago. The Carousel Industrial Warehouse was bought in late 2016 at a price substantially lower than the replacement cost. During its duration under Altus's management, the warehouse generated stable income while allowing room for future profitability through strategic lease restructuring.

Key Developments Leading to the Sale

A pivotal moment came in 2020 when the primary tenant vacated the property. This allowed Altus to seize the opportunity to re-lease a section of the space at an increased rental rate. This adaptive strategy not only improved revenue but also emphasized Altus’s commitment to maintaining operational flexibility, essential for a potential sale down the line.

Preliminary calculations related to the exit reveal that the investment yielded an impressive internal rate of return (IRR) of approximately 23.5% during the holding period. Considering the current market turbulence, these figures highlight the effectiveness of Altus's long-term investment strategizing.

Insider Insights from Altus Equity Group

The CEO of Altus Equity Group, Forrest Jinks, expressed his satisfaction with the timing of this sale, noting, “With much of the real estate market facing significant distress, sellers are often under pressure, and valuations have declined. Exiting an investment at full valuation under such circumstances not only validates our business plan but also positions us favorably to reinvest in a buyer-friendly landscape, enhancing our potential for even better returns.”

The transaction was facilitated by Todd Schapmire from W Real Estate, located in Santa Rosa, California. This successful disposition follows a notably active period for Altus Equity Group, which recently secured six multifamily properties in Odessa, Texas, alongside the acquisition of a light industrial park within the Dallas-Fort Worth Metro area.

Future Prospects and Strategic Goals

As Altus continues its focus on strategic acquisitions in burgeoning markets, the firm remains disciplined, targeting exits that maximize investor returns. Moreover, with a strong track record in the real estate sector, Altus Equity Group Inc. is regarded as an experienced player with established strategies aimed at unveiling hidden asset value. The firm has a diverse portfolio that primarily focuses on multifamily and industrial properties across the United States.

With over 25 years of experience in real estate sponsorship, Altus’s commitment to investor trust and performance is reflected in its impressive reinvestment rate of 93%. The firm operates through its core business lines encompassing real estate assets, property management, and private lending, catering to institutional and retail clients alike.

Overall, the successful sale of the Carousel Industrial Warehouse not only reinforces Altus’s capability in navigating market challenges but also primes the company for future growth and value creation strategies, confident in their approach to real estate investment and capital deployment.