Identification – Waterford utilized a relationship with a local investment sales broker to acquire a 26 unit apartment project off-market in the Belmont Shore 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 and the project could be much better positioned if a complete rehabilitation was completed on the asset.  

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 project had not had any significant improvements made in the preceding 25 years.

Capitalization – Waterford partnered with a family office 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 A apartment project for tenants seeking a new unit within walking distance of the beach and 2nd street. 

Stabilization – Waterford rehabbed the project in 24 months and stabilized it to an above market yield on cost. Waterford decided to hold the asset long term with its partner given the superior dynamics of the asset and refinanced it with long term agency debt .  Waterford was able to return 20% of the initial equity invested while achieving a 7.4% yield on the equity remaining in the project.