Identification – Waterford leveraged a relationship with an investment sales broker to acquire the 98% leased 196,000 SF two building Class A office campus from an institutional seller.

Evaluation – Waterford utilized its strong market knowledge to underwrite the opportunity quickly and realized the project was in one of the best performing office sub-markets in Southern California.

Business Plan – Waterford felt the project could achieve higher market rents given the quality of the asset coupled with the lack of competitive options for tenants in the sub-market, greatly reducing the relocation risk of the projects existing tenant base.

Capitalization – Waterford partnered with an institutional real estate equity fund to acquire the project all cash for $32M within 30 days of going under contract.

Asset Management – Waterford immediately begin working with one of the existing tenants at the project to sell them their current building as they had expressed interest in being a long term owner during the due diligence process. Waterford sold them their building exactly one year after acquiring the project at a 25% profit. Waterford also renewed and expanded the majority of the tenants in the other building within the first 12 months of ownership.

Stabilization – Waterford sold the remaining building to the same user for a higher price off market, 1.5 years later. The project level equity multiple was a 2.1 and the IRR was just above 45% on a 2.5 year hold.