Rockport acquired the property in Q2 2014. Ladera was the second asset acquired from the ownership group and suffered from a dated physical condition. The business plan included a comprehensive physical upgrade and rebranding to strategically position the property in the submarket. The capital improvements included major exterior updates with an emphasis on enhancing drive-by appeal, clubhouse modernization, resort-style pool, added amenities and a phased unit upgrade program.
Results were ahead of expectations with revenue growth of 32% and NOI growth of 88% in approximately two years. The property was sold generating a 2.97x multiple on invested capital.
Rockport acquired the property through an off-market transaction at a discounted basis. The asset was completely repositioned to compete with higher end assets in the area through an extensive capital improvement program that included the reconstruction of a “Class A” quality clubhouse, amenity improvements and a phased upgrade strategy for unit interiors.
The repositioning generated a 38% improvement in revenue. This growth, combined with expense normalization, led to a 288% increase in NOI. The property was sold in approximately 2.5 years generating over a 3.8x multiple on invested capital.
Rockport acquired the asset from a larger portfolio of properties that had been mired in bankruptcy for years, resulting in deferred maintenance and underperforming operations. A multi-phased capital plan is being executed to greatly improve the physical condition and take advantage of the strategic, high-traffic location.
The first phase of the business plan included curing deferred maintenance and stabilizing operations. That phase is complete and 90% of capital was returned to investors within 2.5 years of acquisition. Phase two of the upgrade plan is underway with the objective to capture further upside through high-end upgrades inclusive of a new construction clubhouse, resort-style pool, new fitness center, upscale unit upgrades and other amenity additions.