Waterford Buys Newport Beach Portfolio for $31M

Kidder Mathews represented the buyer and seller in the deal, which included an assemblage of nine adjacent parcels encompassing an entire city block in Dover Shores.
Dover Heights Apartment Homes

Waterford Residential—a subsidiary of Waterford Property Co.—has acquired Dover Heights Apartment Homes, a multifamily assemblage in Newport Beach, Calif., for $30.6 million. This marks historic numbers, as most rental housing stock of this size and larger in the area is institutionally owned. The transaction includes nine adjacent, contiguous lots encompassing almost an entire city block, which sold for $463,000 per unit or $474 per square foot. 

Situated within the Dover Shores neighborhood, the properties comprise a total of 66 units. The new owner plans to implement a significant capital improvements plan to the interiors and exteriors of the buildings, which will include adding washer/dryer hookups and outdoor communal resident retreats to the common area spaces. 

Kidder Mathews’ Senior Vice President Steven Brombal and Associate Vice President Josh Rhee represented both the seller, a local private investor, and the buyer in the deal. 

“There are nine individual parcels comprising this sale, and at any time an exit strategy could be to selectively and strategically sell individually to separate owners capitalizing on a ‘smaller building’ offering with significantly higher fundamentals of price-per-unit and compressed cap rates coupled with a larger pool of potential investors,” said Brombal in a prepared statement. “Typically, that exit strategy is simply not available in a community of this size.” 

Last August, Kidder Mathews brokered the $6.9 million sale of a 26-unit multifamily community in Clairemont, Calif. The transaction was part of a 1031 Exchange and the sale price represented a 4.3 percent cap rate on in-place income and expenses.

Image courtesy of Kidder Mathews