A Five-Year Story of Resilience, Growth, and Operational Excellence in Atwater Village

Client Spotlight: Client (Name Protected for Privacy)

In property management, performance isn’t just about what happens in a “good year.” It’s about how an asset holds up over time, through market shifts, tenant challenges, and the occasional big surprise that tests both systems and leadership.

That’s why one of our Atwater Village properties stands out. Over the last five years, this asset has shown steady income growth, impressive efficiency, and a strong recovery after a major one-time expense year. With the client, we’ve been able to apply disciplined operational practices while keeping the focus on long-term value, not short-term noise.

Here’s what the journey looked like.

The Big Picture: Income Growth with Strong Operating Control

From 2021 through 2025, the Atwater Village asset demonstrated a consistent upward income trend. The property grew year over year, fueled by stable rent performance and reliable reimbursements.

But what’s most meaningful is that growth didn’t come from luck — it came from structure:

• Clear vendor accountability

• Tight expense oversight

• Focused tenant management

• And a commitment to protecting NOI as the core indicator of operational health

In short, the property didn’t just grow. It grew efficiently.

2021–2023: A Stable Foundation and Best-in-Class Efficiency

The first three years created an exceptionally strong foundation. These were high-discipline operating years where the property performed with NOI margins hovering in the high-60% range.

What that signals operationally:

• Expenses were predictable and well-managed

• Service contracts were controlled and tracked

• Tenant performance remained stable

• Preventive maintenance ensured fewer emergencies

This period validated that the asset’s core was healthy and its systems were working.

2024: A One-Time Expense Shock — Not a Revenue Problem

In 2024, the story changed — but not because income weakened. Income continued to rise, showing the property was still leasing and collecting well.

Instead, NOI dropped sharply because expenses spiked in a major, non-recurring way. Years like this happen in real estate. What matters most is how clearly you see it and how effectively you respond.

For this Atwater Village property, 2024 became a “truth-telling year”:

• It separated recurring vs. one-time costs

• Highlighted the importance of a cap-plan

• Reinforced why consistent operational baselines matter

Rather than panic, the focus stayed on clarity, documentation, and stabilization.

2025: Full Recovery and the Strongest Year in the Window

Then came 2025 — and it was the clearest confirmation that 2024 was an outlier.

Expenses normalized, income strengthened further, and the asset delivered its highest NOI margin of the five-year period.

Operationally, that rebound comes from:

• returning to baseline cost controls

• maintaining tenant stability

• catching issues early before they became emergencies

• holding vendors to both scope and standard

The takeaway is simple:This property has durable cash-flow strength when operated under normalized conditions.

What We’re Watching Going into 2026

With Client, our aim is to keep the momentum while staying proactive in three key areas:

1. Expense Normalization Stays Intact

2025 is our baseline year. Any spike in 2026 gets flagged early and categorized clearly as:

• recurring operating cost

• or one-time event

That discipline protects NOI and reduces surprises.

2. Tenant Health and Collections Risk

Even one distressed tenant can create ripples through legal fees, repairs, and turnover costs. Monitoring payment patterns, renewals, and early warning signs keeps margin stable and prevents “silent leakage.”

3. Preventive Maintenance vs. Capital Surprise

2024 reminded us what deferred or unavoidable large repairs can do to the income story. A proactive annual cap-plan with an inspection cadence helps smooth performance across years.

Closing Reflection

This Atwater Village property isn’t just an asset that performed well. It’s a property that proved its strength across a full operating cycle — growth years, a disruption year, and a rebound year.

With Client as our ownership partner, this story highlights what we believe in deeply at The Vine:

Operational Excellence is not a buzzword. It’s a discipline.It’s built in the everyday habits that protect NOI, strengthen tenant outcomes, and keep assets stable for the long haul.

We’re grateful for the trust in this partnership — and excited for what 2026 will bring.

Operational excellence doesn’t happen by accident—it’s built. If you’re looking for a partner who protects your asset like it’s their own, let’s connect.