Identification – Waterford utilized a relationship with a local investment sales broker to acquire the 220,000 SF seven-building Office campus off-market in December of 2019 from a high net worth seller looking to dispose of the asset after purchasing the original building and developing the other buildings over the proceeding 25 years.  Waterford utilized a creative seller carry-back structure to acquire the project to meet the terms the seller wanted to transact. 

Evaluation – Waterford utilized its strong market knowledge to underwrite the opportunity quickly, realizing the existing landlord had stopped aggressively pushing lease rates rents to be 15-20% below market while also failing to modernize the project to a newer Class A condition.

Business Plan – Waterford felt the project could be re-positioned well by enhancing all the common areas of the project’s interiors and exteriors 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 within 45 days of going under contract.

Asset Management – Waterford hired best-in-class architects and general contractors to reposition the asset as the highest quality low rise Office asset for smaller to mid-size tenants in Central Orange County.  Waterford was able to immediately increase rents at the project by almost 10%.

Stabilization – Waterford is currently repositioning the project and is working to lease it to 95% occupancy with the goal of an eventual sale to a long-term owner interested in a fully repositioned and stabilized project.