Long Beach, CA
Identification – Waterford utilized a relationship with a local sales broker to acquire a 42 unit apartment project off-market in the East Village/Downtown submarket of Long Beach.
Evaluation – Waterford utilized its strong market knowledge to underwrite the opportunity quickly and realize the apartments were clearly under market from a rent standpoint if the project was re-positioned to attract millennial tenants close to great walkable amenities.
Business Plan – Waterford felt the project could be re-positioned by bringing the current units at the project up to today’s Class A standards while activing the common areas of the projects as much as possible. The units had not been touched in over 35 years and was in need of major rehab work.
Capitalization – Waterford partnered with a syndicated of private high net worth individuals to acquire the project within 45 days of going under contract.
Asset Management – Waterford hired a best in class general contractor along with a local design firm to reposition the asset as a B+ to A- apartment projects for tenants seeking a new unit in the downtown area. Waterford was able to attract Millennial tenants who wanted a Class A environment but wanted to pay a slight discount in rent while not sacrificing quality.
Stabilization – Waterford stabilized the project to a 6.2% yield on cost and sold the project in 2019 for a 1.45 project level equity multiple.