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Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
CLA Delivers Alternative Investment for Low-Yield Market: ALTUS Realty Fund
Minneapolis — May 7, 2015 — While some investors have struggled to generate sustainable income in an era of low interest rates, CliftonLarsonAllen Wealth Advisors, LLC (CLA Wealth Advisors) has sought alternative investment strategies to help clients achieve their goals — opportunites that are not available in the public market.
One example of this proactive, goals-based approach is the Altus Realty Income Fund (ARIF), a $50 million private real estate investment vehicle born from CLA Wealth Advisors’ desire to meet clients’ needs. The firm chose ALTUS, one of the largest privately held real estate investment firms in the Midwest, to create the fund, which closed to new accredited investors in March 2015.
“We saw an opportunity to solve our clients’ challenge by focusing on an asset class that generates income streams that actually benefit from low interest rates,” says Tony Hallada, CEO of CLA Wealth Advisors. “ALTUS has exceeded our expectations in sourcing and buying quality, multitenant real estate with long-term leases. They have been able to lock up financing for a longer period at a lower cost than we expected, resulting in anticipated 8, 9, and 10 percent cash-on-cash sheltered income for our clients over the next three years.”
According to Hallada, this partnership was initiated when CLA asked, “How can we help solve our clients’ problems in creative ways?” The firm determined that core and core-plus real estate in Minneapolis-St. Paul and St. Louis was a good place to focus its attention.
“We see commercial real estate as an income alternative that also offers diversification from the traditional public stock and bond market,” Hallada says. “In addition, we believe real estate values fell far below fair value during the financial crisis. The improving economy and the deleveraging cycle should allow real estate values to increase back to normal.”
Next, CLA needed to identify the best real estate operator in its two target markets; Robb Johnson, founder and managing principal for ALTUS, rose to the top. CLA made a significant effort to help create ARIF, which is managed by ALTUS.
“We think the window of opportunity is currently open, and will remain open for the foreseeable future, to acquire well-located, core-plus real estate in secondary markets where the principal goal is excellent, distributable cash flow,” Johnson says.
The ALTUS investment portfolio consists of over 4 million square feet of multi-tenant office, industrial, and retail properties. With its substantial operational and investment expertise, market knowledge, and performance of simply “doing what we say we will do,” ALTUS has cultivated an unmatched reputation throughout the St. Louis and Minneapolis real estate markets.
ALTUS's predecessor company, R.L. Johnson Company, was one of the largest private owners of real estate in Minneapolis, staffed and owned by many of the same principals/investors as ALTUS. Over its lifecycle, the company acquired and/or constructed more than 10 million square feet of real estate for its own account and that of third party clients prior to merging its Minneapolis portfolio with Duke Realty.
“CLA remains attentive and committed to the needs of our clients,” explains Hallada. “Our willingness and ability to effectively respond with creative solutions is one of the things that sets us apart. As new challenges arise, we will call upon our resources to help our clients reach their goals and live their dreams.”
About CliftonLarsonAllen Wealth Advisors, LLC
CliftonLarsonAllen Wealth Advisors, LLC (CLA Wealth Advisors), an SEC-registered investment advisor, offers private wealth advisory services, including wealth management and investment planning; financial and retirement planning; estate, gift, and income tax planning; divorce financial planning; business succession planning; sell-side representation of mergers and acquisitions; insurance and risk management; employer-sponsored benefit plan design, compliance, and consulting; and investment consulting for endowments and foundations. The national wealth advisory practice consists of approximately 100 professionals who advise or consult on roughly $3.9 billion in total client assets. According to Accounting Today’s 2014 “Wealth Magnets” report, CLA Wealth Advisors is ranked fourth in the billion dollar club based on assets under management (AUM). This publication reviews wealth managers affiliated with CPA firms.
CliftonLarsonAllen Wealth Advisors, LLC is a wholly owned company of CliftonLarsonAllen LLP, a national professional services firm. For more information visit CLAconnect.com/privateclient.
Private fund investments are offered only through an offering memorandum, which explains fully all of the implications and risks of the offering of securities to which it relates. The material in this release will constitute neither an offer to sell nor a solicitation of an offer to buy any securities. Private investments involve a high degree of risk, including, but not limited to, a lack of liquidity and the potential loss of investment principal. There is no guarantee that the stated objectives of any private investment fund will be met. Private investment fund offerings are not filed with or reviewed by any securities regulatory agency. Past performance is no assurance of future results.
CliftonLarsonAllen (CLA) is a professional services firm delivering integrated wealth advisory, outsourcing, and public accounting capabilities to help clients succeed professionally and personally. Our professionals are immersed in the industries they serve and have deep knowledge of their operating and regulatory environments. With more than 5,000 people, more than 100 U.S. locations, and a global affiliation, we bring a wide array of services to help clients in all markets, foreign and domestic. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.