DECIPHER™ Case Study 09:
Price Optimization, Absorption/Lease-Up Maximization, Competitive Performance Benchmarking, Investor Reporting, Lease Renewal Optimization
Synopsis
Optimized price for all 544 units during lease-up and thereafter after stabilization. CA helped shores surpass all budget forecasts and expectations for all investors by maximizing revenues using DECIPHER™ RVO modeling.
Background
Shores is a 544-unit luxury development located at 4201 Via Marina, in Marina del Rey, California and one of the signature luxury apartment communities in California. Shores consists of 8.3 acres or 361,548 square feet and is located on the southwest corner of the intersection of Via Marina and Panay Way in Marina del Rey, California. The land was formerly Del Rey Shores, a 40+ year old, 202-unit rental development consisting of 17 two-story apartment buildings, a swimming pool, and carports. Shores was developed on land owned by Los Angeles County with long term ground lease. It is identified as Parcels 100 and 101. Jerry B. Epstein, Managing General Partner of Del Rey Shores and developer of Shores, is one of the original Marina del Rey lessees. The original ground leases for Parcels 100 and 101, set to expire in March 2022, have been extended by 41 years to March 2063 as consideration for the planned redevelopment. The County owns all the land within the Marina area, and developments are situated on leased land. With its unique setting for recreation and relaxation, contemporary architecture and a coastal vibe, life at Shores is complete. With a two-acre park-like courtyard at the heart of the community, there’s always something fun to do at Shores. Shores equips residences with premier amenities to make every home comfortable and complete. Check out all of Shores’ Amenities to see what’s in store for your lifestyle. For more info: http://www.multihousingpro.com/print.php?AID=676
Challenge
David Levine, Chief of Staff for Jerry Epstein, realized the significant competitive forces present within the Marina del Rey submarket and sphere of influence and wanted to guarantee Shores’ lease-up success to all investors including HUD).
Solution
Competitive Analytics’ custom analytics approach delivers competitive research, amenity and feature recommendations, and rent optimization via DECIPHER™ RVO platform for optimizing all 544 multifamily rental units.
Results
Helped Shores achieve and surpass all absorption/lease-up objectives; well ahead of an extremely aggressive lease-up budget outlined by investors and exceeded all revenue objectives. Currently responsible for all renewal pricing optimization responsibilities.
Return on Analytics
>1,500%
“We have been working with Competitive Analytics since the construction phase of our project in order to price our project appropriately when we opened in the fall of 2013. Competitive Analytics has been enormously helpful to us in many phases of our marketing and pricing activities and I am confident that they were instrumental in helping us lease up as quickly as we have.”
– David Levine, President
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