Identification – Waterford utilized a relationship with a local sales broker to acquire a 18-unit apartment project off-market in the Westcliff submarket of Newport Beach.  It then utilized its relationship with the seller to acquire the an additional 66 units in 4 projects across the street off-market as well to secure84 total apartment units.  

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 projects were re-positioned to meet the Class A standards of the Irvine Company owned competitive projects in the area.  

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.  The units had not been touched in over 35 years so everything was dated at the projects.  The projects also benefited from the close proximity to great walkable amenities off Westcliff/17thStreet offering tenants advantages over the competitive set from a lifestyle perspective. 

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

Asset Management – Waterford hired best in class architects and general contractors to reposition the asset as a larger A- apartment project for tenants seeking a new unit in the greater Orange County coastal area.  Waterford was able to attract Millennial tenants who wanted a Class A environment but wanted to pay a slight discount in rent without sacrificing quality.  The projects were all made to look and feel the same so they functioned as one larger project.      

Stabilization – Waterford is in the process of finishing construction on the last remaining units and leasing up the project to eventually re-finance them to hold long term with our partners.