Sacramento - the first market to implement the company’s strategy

 

Alto Capital has closed the Sacramento Housing Opportunity Fund (SHOF) with over $2 million in equity capital and 31 investors. The fund invests in distressed residential assets in Sacramento, CA.  The fund will seek to deliver an annualized return of 20% to investors.

Sacramento’s diverse economic structure and favorable demographic trends, coupled with what we believe is a market over-correction from the housing crisis, make it an ideal market for the implementation of Alto Capital’s strategy.

SHOF acquires distressed residential properties in central/infill areas of Sacramento through foreclosures, short-sales, bulk-purchases from banks, and through the Principals’ relationships within the Sacramento real estate community. 

The fund is targeting properties close to public transportation, retail, employment centers, and hospitals. These are distressed but healthy/functional properties where minimal repairs are required. While the median home price in Sacramento has fallen by greater than 50% since its peak in 2005, rents have remained relatively steady allowing for attractive gross rent yields of 20% - 35%.

After an all-cash purchase to ensure discount valuations, properties will be stabilized through rehabilitation and leasing. This will allow for the placement of debt to maximize returns. The portfolio of properties will then be managed to create a steady source of positive cash flow.

We are committed to providing quality home ownership opportunities to low and moderate income households upon the exit from our fund. 

Alto Capital has already achieved success in the implementation of this strategy as demonstrated by our current portfolio.