Long Beach, CA
Identification – Waterford utilized a relationship with a local sales broker to acquire a 12 unit apartment project off-market in the Retro Row 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 30 years and was in a major state of disrepair.
Capitalization – Waterford partnered with a syndicated of private high net worth individuals to acquire the project within 30 days of going under contract.
Asset Management – Waterford hired a best in class general contractor to reposition the asset as a B+ to A- apartment projects for tenants seeking a new unit in the greater long beach coastal 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 sold the 12 unit project 18 months after acquisition for a cumulative 1.90 project level equity multiple.