Identification – Waterford utilized a relationship with a local investment sales broker to acquire a 36-unit apartment project off-market in the Bluffs submarket of San Pedro.  

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 they were re-positioned to meet the Class A standards of our projects in the area.  Waterford also realized the current family who owned it was trying to execute on a value add rehabilitation of the project but was failing at it due to its lack of experience.  

Business Plan – Waterford felt the project could be re-positioned by bringing the current units up to Class A standards while activating the common areas of the projects as much as possible.  Some of the units had not been touched in over 35 years and some had been poorly rehabbed.  The project was 85% vacant at the time of purchase and also required a large earthquake retrofit to be done to the existing tuck under garages. 

Capitalization – Waterford partnered with a small syndicate of private high net worth individuals to acquire the project within 60 days of going under contract.  

Asset Management – Waterford hired best in class architects and general contractors to reposition the asset as a Class A- apartment project for tenants seeking a new unit in the greater San Pedro/Long Beach coastal area.  Waterford was able to attract tenants who wanted a Class A environment but wanted to pay a slight discount in rent without sacrificing interior unit quality.  

Stabilization – Waterford was able to achieve higher rents then projected at acquisition and will re-finance the project as a long term hold with its partners given it will achieve strong cash on cash returns.