Advanced Real Estate Buys Large SoCal Apartment Property for $234M
Buyer secured 10-year, $150.8 million Freddie Mac loan
By Nick Trombola January 2, 2024 12:47 pm
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A 714-unit apartment complex has sold in Costa Mesa, Calif., in December, making it one of the largest multifamily deals in the region in 2023.
Irvine-based Advanced Real Estate paid $234 million to Camden Property Trust for the complex, previously dubbed Camden Martinique Apartments, according to reporting by The Real Deal. The sale was announced late last week.
Built in 1987, the property at 2855 Pinecreek Drive will be renamed The Grand Costa Mesa and will undergo $45 million in renovations, per TRD. JLL (JLL) represented Houston-based Camden in the transaction and also represented Advanced in securing a 10-year, $150.8 million Freddie Mac loan at a fixed interest rate of 5.95 percent.
“It is rare to find an opportunity to buy such a large asset in coastal Orange County. We want to continue to grow the portfolio,” Advanced President Paul Julian told TRD in a statement. Julian also noted that he expects the building’s renovations to finish in four years.
Neither Advanced nor Camden could immediately be reached for further comment.
The property features one- and two-bedroom apartments, with rents ranging from $2,000 to $2,800 per month, and is 95 percent leased, per TRD.
Apartment complex sales of this size are rare in Southern California, especially over the last year. Just $216 million in multifamily assets traded hands from the start of 2023 through August, according to a recent market report by Yardi Matrix. Broadstone Cavora, an apartment property in Laguna Niguel, sold for $153 million in the third quarter of last year, though contains about half the amount of units as Advanced’s new property.
Advanced purchased two other Southern California apartment buildings in 2023, according to TRD. The firm acquired The Edison, a 156-unit building in Long Beach, for $58 million in March, and the 264-unit Surf House Apartments in Huntington Beach for $96 million in September.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
