Identification – Waterford utilized a relationship with a local investment sales broker to acquire a 13 unit apartment project off-market in the Alamitos Beach 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.  

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 activating the common areas of the projects as much as possible.  The units had not been touched since the project was originally developed in the mid 60’s and was in need of major rehab work.

Capitalization – Waterford partnered with a syndicate of high net worth investors to acquire the project within 60 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 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 rehabbed the project in 18 months and stabilized it to a 6.5% yield on cost. Waterford sold the investment in 2017 and the investment generated a 26.35% project level IRR along with a 1.54X equity multiple.