1000 and 1050 Lakes Drive, West Covina, CA
Identification – Waterford utilized a relationship with a local leasing broker and the seller to acquire the 174,000 SF Office campus on-market in November of 2015 from an Institutional looking to dispose of the asset after purchasing it at the height of the last cycle for roughly 40% more then what Waterford paid for it.
Evaluation – Waterford utilized its strong market knowledge to underwrite the opportunity quickly, realizing the existing landlord had stopped aggressively pursing lease transactions causing occupancy to fall to 72%.
Business Plan – Waterford felt the project could be re-positioned well by enhancing the common areas of the projects while investing capital into Spec Suites that were move-in ready for tenants.
Capitalization – Waterford partnered with an Institutional real estate equity fund to acquire the project all cash for $34M within 30 days of going under contract.
Asset Management – Waterford hired best in class architects and general contractors to reposition the asset as the highest quality Office asset for smaller to mid-size tenants in the East San Gabriel Valley. Waterford was able to immediately increase rents at the project almost 15% and increase occupancy within 18 months to over 90%.
Stabilization – Waterford is evaluating its desire to either sell or hold the asset now that it has been repositioned and the capital work is complete.