Acquired & Repositioned For Successful Sale
- Vista Catalina
- 90 Units
- Year Built: 1971
- Year Acquired: 2010
- Renovations Completed: 2012
Within the prestigious city of Rancho Palos Verdes, Vista Catalina (formerly The Madison) boasts a unique location on the cliffs overlooking the Pacific Ocean. With close proximity to the South Bay’s professional core and nationally-distinguished school district, the area is a highly desirable location for families and working professionals alike. In 2010, Alliance factored the property’s location, the significant restraints to building in the area and the strong household incomes, and decided to acquire the 90-unit community.
The Goal. As one of several Ranchos Palos Verdes apartment communities built in the 1970s that had not undergone any interior or exterior renovations, Alliance quickly implemented a focused renovation plan to reposition The Madison as Vista Catalina, a top-of-the-line luxury community in a market where high-end apartments are scarce.
The Work. A full-scale renovation began in December 2010 and completed in June 2012. Interior upgrades feature beaded-shaker cabinets, stainless-steel appliances with new washers and dryers, CaesarStone and granite countertops, driftwood-style flooring, dual-pane windows, and premium faucets and lighting fixtures. Enhancements were also made to the pool areas, including the addition of WiFi connectivity, pool lounges, and an entertainment center featuring festoon lighting and iPod docking stations.
The Results. Post-renovation, Vista Catalina achieved net effective rent growth of $364 per newly renovated unit, — which translates to 18.7% rent growth — and approximately 27% of residents transferred to newly renovated units. By the end of 2012, Vista Catalina was placed back on the market and successfully sold to AEW. Alliance now manages the property on the company’s behalf.