Acquisition Portfolio

Riverwalk at Papago Park - Phoenix, AZ

On November 16, 2009, the Fund purchased 26 residential multi-family units in Phoenix, Arizona, in a complex called Riverwalk. The property is extraordinarily well located and has excellent amenities and rental market curb-appeal. Located in the heart of the Rio Salado district, Riverwalk is surrounded by many attractions like Papago Park, Phoenix Zoo, Desert Botanical Garden, Sun Devil Stadium and exciting shopping venues. Property presently ranges in 97-100% leased, although the summer in Arizona (like Nevada) is a more challenging time to lease. It is a resort-like atmosphere and appearance which has significant appeal and its location is superior to most in its greater sub-market competitors.

Financial Performance Summary

Shortly after this acquisition, Riverwalk has seen net rental rates hold steady while occupancy rates have remained at reasonably high levels (between 89% and 98%). Optimus maintained use of the office space in the clubhouse to increase rental presence and maximize occupancy of its units. An internal unaudited 2010 financial summary of Riverwalk is presented in Schedule F, and shows the property (78 condos) had net earnings of $229,163 on a revenue of $660,352, producing a property cap rate of 4.8 % (based on a purchase price of $4,875,000 for all 78 units divided by three owners of 26 units each). Optimus’ share of the earnings is exactly 1/3rd (or $76,388) in 2010.

Photo Gallery

Below are photos of the Riverwalk project. Click on the thumbnail to view a larger version of the photo.