Quarterly Report
Q2 2025
“During the quarter, we sold BrightStar Meridian and the Adelmann Building. These sales generated significant realized gains and reinforced the embedded value in the portfolio.”
It was another successful quarter for the Fund, with realized returns of 12.34% and total returns of 12.39%. While today’s environment remains one of the most unique and challenging, we have experienced, perhaps rivaled only by the early days of the pandemic, we are encouraged by the results we have been able to deliver.
Leasing activity continues to recover, though downtime and leasing costs still weigh on operating performance. Meanwhile, asset values remain relatively high, especially when compared to their current cash flow yields, which has made sourcing new acquisitions that align with our underwriting guidelines difficult. Despite these challenges, we remain active in evaluating new opportunities and continue to underwrite a steady pipeline of potential acquisitions.
That work has led to several exciting projects currently under contract, including retail centers in Wyoming and Montana, along with multiple build-to-suit projects modeled after previously successful developments (see acquisition pipeline). These opportunities are consistent with our strategy: high quality real estate that generates strong cash flow and represents long-term value creation and stability. For partners considering additional investment, we encourage you to speak with our investor relations team, as we anticipate accepting new capital in the coming weeks.
Managing and optimizing the portfolio remains our top priority as we position the Fund for long-term growth and performance. This quarter, we sold two properties, BrightStar Meridian and the Adelmann Building, resulting in equity multiples of 2.05x and 2.26x, respectively. These returns reflect the sale proceeds on invested capital alone and do not include the cash flow generated during their hold period. While both assets performed well, they were no longer accretive to ongoing returns. The ability to exit at strong valuations highlights the embedded value in the portfolio. We remain disciplined in identifying new opportunities that meet our return targets, even as sourcing conditions remain challenging. For more detail, see the Portfolio at a Glance section in this report.
These transactions highlight two key points:
Recent activity reflects the value still to be realized across the portfolio, whether through leasing, development, or selective dispositions
The current market remains highly competitive, with capital chasing deals at prices that, in our view, are not supported by underlying fundamentals, making disciplined underwriting more important than ever
We cannot thank you enough for your continued support and confidence. We are proud of what the Fund is accomplishing in this challenging environment and remain focused on growth that reinforces stability today and creates lasting value for you, our partners. As market conditions normalize, we believe the Fund is well-positioned to deliver strong performance for decades to come.
Travis Barney, Chief Executive Officer
Alturas Capital Partners, LLC
Devin Morris, Chief Operating Officer
Alturas Capital Partners, LLC
Blake Hansen, Chief Investment Officer
Alturas Capital Partners, LLC
It was another successful quarter for the Fund, with realized returns of 12.34% and total returns of 12.39%. While today’s environment remains one of the most unique and challenging, we have experienced, perhaps rivaled only by the early days of the pandemic, we are encouraged by the results we have been able to deliver.
Leasing activity continues to recover, though downtime and leasing costs still weigh on operating performance. Meanwhile, asset values remain relatively high, especially when compared to their current cash flow yields, which has made sourcing new acquisitions that align with our underwriting guidelines difficult. Despite these challenges, we remain active in evaluating new opportunities and continue to underwrite a steady pipeline of potential acquisitions.
That work has led to several exciting projects currently under contract, including retail centers in Wyoming and Montana, along with multiple build-to-suit projects modeled after previously successful developments (see acquisition pipeline). These opportunities are consistent with our strategy: high quality real estate that generates strong cash flow and represents long-term value creation and stability. For partners considering additional investment, we encourage you to speak with our investor relations team, as we anticipate accepting new capital in the coming weeks.
Managing and optimizing the portfolio remains our top priority as we position the Fund for long-term growth and performance. This quarter, we sold two properties, BrightStar Meridian and the Adelmann Building, resulting in equity multiples of 2.05x and 2.26x, respectively. These returns reflect the sale proceeds on invested capital alone and do not include the cash flow generated during their hold period. While both assets performed well, they were no longer accretive to ongoing returns. The ability to exit at strong valuations highlights the embedded value in the portfolio. We remain disciplined in identifying new opportunities that meet our return targets, even as sourcing conditions remain challenging. For more detail, see the Portfolio at a Glance section in this report.
These transactions highlight two key points:
Recent activity reflects the value still to be realized across the portfolio, whether through leasing, development, or selective dispositions
The current market remains highly competitive, with capital chasing deals at prices that, in our view, are not supported by underlying fundamentals, making disciplined underwriting more important than ever
We cannot thank you enough for your continued support and confidence. We are proud of what the Fund is accomplishing in this challenging environment and remain focused on growth that reinforces stability today and creates lasting value for you, our partners. As market conditions normalize, we believe the Fund is well-positioned to deliver strong performance for decades to come.
Chief Executive Officer
Alturas Capital Partners, LLC
Travis Barney,
Chief Operating Officer,
Alturas Capital Partners, LLC
Devin Morris,
Chief Investment Officer,
Alturas Capital Partners, LLC
Blake Hansen,
It was another successful quarter for the Fund, with realized returns of 12.34% and total returns of 12.39%. While today’s environment remains one of the most unique and challenging, we have experienced, perhaps rivaled only by the early days of the pandemic, we are encouraged by the results we have been able to deliver.
Leasing activity continues to recover, though downtime and leasing costs still weigh on operating performance. Meanwhile, asset values remain relatively high, especially when compared to their current cash flow yields, which has made sourcing new acquisitions that align with our underwriting guidelines difficult. Despite these challenges, we remain active in evaluating new opportunities and continue to underwrite a steady pipeline of potential acquisitions.
That work has led to several exciting projects currently under contract, including retail centers in Wyoming and Montana, along with multiple build-to-suit projects modeled after previously successful developments (see acquisition pipeline). These opportunities are consistent with our strategy: high quality real estate that generates strong cash flow and represents long-term value creation and stability. For partners considering additional investment, we encourage you to speak with our investor relations team, as we anticipate accepting new capital in the coming weeks.
Managing and optimizing the portfolio remains our top priority as we position the Fund for long-term growth and performance. This quarter, we sold two properties, BrightStar Meridian and the Adelmann Building, resulting in equity multiples of 2.05x and 2.26x, respectively. These returns reflect the sale proceeds on invested capital alone and do not include the cash flow generated during their hold period. While both assets performed well, they were no longer accretive to ongoing returns. The ability to exit at strong valuations highlights the embedded value in the portfolio. We remain disciplined in identifying new opportunities that meet our return targets, even as sourcing conditions remain challenging. For more detail, see the Portfolio at a Glance section in this report.
These transactions highlight two key points:
Recent activity reflects the value still to be realized across the portfolio, whether through leasing, development, or selective dispositions
The current market remains highly competitive, with capital chasing deals at prices that, in our view, are not supported by underlying fundamentals, making disciplined underwriting more important than ever
We cannot thank you enough for your continued support and confidence. We are proud of what the Fund is accomplishing in this challenging environment and remain focused on growth that reinforces stability today and creates lasting value for you, our partners. As market conditions normalize, we believe the Fund is well-positioned to deliver strong performance for decades to come.
Travis Barney, Chief Executive Officer
Alturas Capital Partners, LLC
Devin Morris, Chief Operating Officer
Alturas Capital Partners, LLC
Blake Hansen, Chief Investment Officer
Alturas Capital Partners, LLC
Photo: Medicine Bow, Wyoming
Q2 Key Numbers
12.34%
Average Realized Return*
12.34%
Average Realized Return*
12.39%
Average Total Return
12.39%
Average Total Return
$7.14M
Realized Net Income
$7.14M
Realized Net Income
$1,673.73
Unit Price
$1,673.73
Unit Price
$675.33M
Assets Under Management
$675.33M
Assets Under Management
*Stated returns are average annualized investor returns. Individual investor returns may vary based on the unit pricing at the time of investment. Realized net income includes realized gains and losses and excludes unrealized gains and losses recorded during the period. Financial information herein related to the quarters ended in 2025 are unaudited as of the date of this report.
Photo: Beartooth Pass Vista Point, Wyoming
Q2 Acquisition Pipeline
Pershing Plaza
Cheyenne, WY
Retail
109,614 SF
Core Plus
Pershing Plaza
Cheyenne, WY
Retail
109,614 SF
Core Plus
Pershing Plaza
Cheyenne, WY
Retail
109,614 SF
Core Plus
Take 5
Various Locations
Retail
1,400 SF
Build-to-Suit
Take 5
Various Locations
Retail
1,400 SF
Build-to-Suit
Take 5
Various Locations
Retail
1,400 SF
Build-to-Suit
2290 King Avenue
Billings, MT
Retail
141,636 SF
Tenant-In-Tow
2290 King Avenue
Billings, MT
Retail
141,636 SF
Tenant-In-Tow
2290 King Avenue
Billings, MT
Retail
141,636 SF
Tenant-In-Tow
108 43rd
Boise, ID - MSA
Industrial
10,661 SF
Tenant-In-Tow
108 43rd
Boise, ID - MSA
Industrial
10,661 SF
Tenant-In-Tow
108 43rd
Boise, ID - MSA
Industrial
10,661 SF
Tenant-In-Tow
Photo: Buffalo Fork River, Wyoming
Development Updates
2700 N Eagle
Meridian, ID
Retail
5,438 SF
Acquired earlier this year, the 2700 N Eagle development project is well underway. Vertical construction is in progress for the new Take 5 Oil Change location, while site work for the Livewell Animal Hospital is set to begin in the coming weeks. The Take 5 is scheduled to be delivered by the end of this year, with the Livewell Animal Hospital early next year.
3171 Quintale (Idaho Fitness Factory)
Meridian, ID
Retail
13,178 SF
Vertical construction is well underway at 3171 Quintale, with steel framing in place and progress continuing on schedule. The project is scheduled to be completed and delivered to Idaho Fitness Factory later this year.
5617 E Cleveland Blvd
Caldwell, ID
Industrial
28,350 SF
When purchased, the 5617 E Cleveland Blvd acquisition included three existing industrial buildings and 15 acres of additional land for future development. We anticipate beginning the first new building later this year.
Settlers Square
Meridian, ID
Residential
60 units
The Settlers Square project has been successfully replatted to allow for the sale of individual units. With this in place, we are able to take the next steps necessary to begin realizing a return on this investment.
Portfolio at a Glance
Portfolio at a Glance
Our focus remains on building and holding a diversified portfolio of durable, cash-flowing assets that we can improve and operate long-term. That said, in today’s market, the combination of high rents and low cap rates has created an opportunity to sell select properties at high valuations.
During the quarter, we sold BrightStar Meridian and the Adelmann Building. These sales generated significant realized gains and reinforced the embedded value in the portfolio. BrightStar, while a small development project, resulted in a 2.05x equity multiple. At Adelmann, following a major lease renewal with the building’s largest tenant, we were able to achieve a 2.26x multiple. These equity multiples reflect the return on invested equity from the sale alone, and do not include the cash flow generated during the hold period, further emphasizing the value that has been created and continue to pursue across the portfolio.
It is important to note that while these assets performed well, they were no longer accretive to the Fund’s ongoing returns. The ability to exit at strong multiples, despite these not being our top-performing assets, highlights the value present in the portfolio today.
These results are a reflection of our disposition philosophy. When we have executed on our value-add strategy, whether through lease-up, rent growth, or operational improvements, and market prices exceed our long-term view of the property’s intrinsic value, and we have already realized the upside, we believe it is the right time to sell and redeploy that capital to higher-returning properties.
Photo: Taggart Lake, Wyoming
Photo: Lamar River Yellowstone National Park
Q2 Dispositions
Brightstar Meridian
Boise, ID
Senior Housing
5,778 SF
The Fund sold the second of its three BrightStar Care build-to-suit projects this quarter. The sale resulted in a 2.05x equity multiple on invested capital, highlighting the strength of our development projects. This outcome represents an additional way the Fund can generate strong returns, through select short-hold projects that complement the long-term cash-flowing core of the portfolio. One BrightStar location remains in the portfolio, and we may evaluate a sale in the future if market conditions remain favorable.
Brightstar Meridian
Boise, ID
Senior Housing
5,778 SF
The Fund sold the second of its three BrightStar Care build-to-suit projects this quarter. The sale resulted in a 2.05x equity multiple on invested capital, highlighting the strength of our development projects. This outcome represents an additional way the Fund can generate strong returns, through select short-hold projects that complement the long-term cash-flowing core of the portfolio. One BrightStar location remains in the portfolio, and we may evaluate a sale in the future if market conditions remain favorable.
Brightstar Meridian
Boise, ID
Senior Housing
5,778 SF
The Fund sold the second of its three BrightStar Care build-to-suit projects this quarter. The sale resulted in a 2.05x equity multiple on invested capital, highlighting the strength of our development projects. This outcome represents an additional way the Fund can generate strong returns, through select short-hold projects that complement the long-term cash-flowing core of the portfolio. One BrightStar location remains in the portfolio, and we may evaluate a sale in the future if market conditions remain favorable.
Adelmann Building
Boise, ID
Retail
16,277 SF
The Fund completed the sale of the historic Adelmann Building in downtown Boise. Originally acquired in July 2017, the property sale resulted in a 2.26x equity multiple on invested capital. After securing a long-term lease renewal with the building’s largest tenant, and given the increased upkeep associated with the historic property, the sale presented a favorable opportunity to reallocate capital towards projects with stronger long-term return potential.
Adelmann Building
Boise, ID
Retail
16,277 SF
The Fund completed the sale of the historic Adelmann Building in downtown Boise. Originally acquired in July 2017, the property sale resulted in a 2.26x equity multiple on invested capital. After securing a long-term lease renewal with the building’s largest tenant, and given the increased upkeep associated with the historic property, the sale presented a favorable opportunity to reallocate capital towards projects with stronger long-term return potential.
Adelmann Building
Boise, ID
Retail
16,277 SF
The Fund completed the sale of the historic Adelmann Building in downtown Boise. Originally acquired in July 2017, the property sale resulted in a 2.26x equity multiple on invested capital. After securing a long-term lease renewal with the building’s largest tenant, and given the increased upkeep associated with the historic property, the sale presented a favorable opportunity to reallocate capital towards projects with stronger long-term return potential.
Portfolio Metrics
82.65%
Occupancy Rate
82.65%
Occupancy Rate
87.91%
Leased Rate
87.91%
Leased Rate
3.96M SF
Total Square Footage
3.96M SF
Total Square Footage
1.92x
Debt-Service Coverage Ratio
1.92x
Debt-Service Coverage Ratio
$227.06M
Investor Capital
$227.06M
Investor Capital
53.57%
Reinvestment Rate
54.38%
Reinvestment Rate
Markets
Markets
Property Types
Property Types
The above charts are based on fair market valuation.
82.65%
Occupancy Rate
87.91%
Leased Rate
3.96M SF
Total Square Footage
1.92x
Debt-Service Coverage Ratio
$227.06M
Investor Capital
53.57%
Reinvestment Rate
Markets
Property Types
The above charts are based on fair market valuation.
Fund Description
The Alturas Real Estate Fund, LLC was formed by Alturas Capital Partners to provide accredited investors access to professionally managed real estate investments. The Fund is a $500 million equity offering created to make commercial and residential real estate investments. It targets middle-market properties frequently ignored by larger funds. These properties can be profitable as a diverse portfolio.
The Fund was created in May 2015 and owns properties in the Intermountain West and Inland Northwest. Managers of the Fund are continually searching for new properties to add to the Fund that meet strict underwriting criteria including a margin of safety, with a focus on cash flows.
Photo: Yellowstone River In Hayden Valley
Fund Description
The Alturas Real Estate Fund, LLC was formed by Alturas Capital Partners to provide accredited investors access to professionally managed real estate investments. The Fund is a $500 million equity offering created to make commercial and residential real estate investments. It targets middle-market properties frequently ignored by larger funds. These properties can be profitable as a diverse portfolio.
The Fund was created in May 2015 and owns properties in the Intermountain West and Inland Northwest. Managers of the Fund are continually searching for new properties to add to the Fund that meet strict underwriting criteria including a margin of safety, with a focus on cash flows.
Photo: Yellowstone River In Hayden Valley
Our Investment Offerings
Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of commercial real estate assets focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted Total Returns: 9-14%
Preferred Return: 8% paid quarterly
Profit Split: 70% investors, 30% manager after preferred return
Fees: 1.5% asset management fee
Minimum Investment: $250,000
Long-Term Note Offering
Our long-term note offering provides our partners with a fixed-income investment with attractive risk-adjusted returns and additional liquidity options. Long-term noteholders can receive distributions in cash or accrue the interest earned throughout the life of the note. Upon maturity of the note investment, partners can reinvest their investment into another note, convert their funds into equity, or redeem their funds.
Interest Rate: 7-9% paid quarterly (rate dependent on duration and amount)
Investment Type: Promissory note
Security: Subordinate to property debt; senior to equity
Term: 24-60 months
Minimum Investment: $100,000
Our Investment Offerings
Equity Offering
Our equity offering allows investors to invest in a diversified portfolio of commercial real estate assets focused on generating excellent ongoing returns from operations. The Fund's offering is best suited for investors who understand and align with the Fund's investment strategy and value long-term partnerships.
Targeted Total Returns: 9-14%
Preferred Return: 8% paid quarterly
Profit Split: 70% investors, 30% manager after preferred return
Fees: 1.5% asset management fee
Minimum Investment: $250,000
Long-Term Note Offering
Our long-term note offering provides our partners with a fixed-income investment with attractive risk-adjusted returns and additional liquidity options. Long-term noteholders can receive distributions in cash or accrue the interest earned throughout the life of the note. Upon maturity of the note investment, partners can reinvest their investment into another note, convert their funds into equity, or redeem their funds.
Interest Rate: 7-9% paid quarterly (rate dependent on duration and amount)
Investment Type: Promissory note
Security: Subordinate to property debt; senior to equity
Term: 24-60 months
Minimum Investment: $100,000
All projections are hypothetical and predicated upon various assumptions that may or may not be identified as such. The future operating and financial performance information contained herein is for illustrative purposes and is not intended to portray any sort of targeted or anticipated returns. There can be no assurance that the Fund will achieve its investment objectives and actual performance may vary significantly.
Alturas Capital Partners, LLC and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice.