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.
Rockport acquired the property in an off-market transaction at an attractive basis.
A capital improvement plan was implemented to address deferred maintenance, enhance visibility and implement modest upgrades. The property was sold within 2 years achieving a multiple on invested capital
1978 – 101 – Q1 2012 – C+/B-
Rockport acquired this distressed asset out of receivership. The initial business plan included investments to cure deferred maintenance and stabilize operations through improved management. The property was sold in approximately 1 year generating over a 2x multiple on invested capital.
1984 – 126 – Q2 2009 – B
Rockport acquired this distressed asset out of receivership. The business plan included investments to cure deferred maintenance, execute minor upgrades and stabilize operations through improved management. The asset was sold in approximately 4 years realizing a 3.8x multiple on invested capital.