Advanced Real Estate Pays $62M for Downtown L.A. Apartment Building
By Nick Trombola September 9, 2024 3:30 pm
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Who says multifamily activity in Downtown Los Angeles is dead?
Irvine-based Advanced Real Estate, which specializes in multifamily acquisitions and management, paid $62 million for the 210-unit Canvas LA multifamily building at 138 North Beaudry Avenue, a little over a mile southwest of Dodger Stadium.
The deal is a relative bargain for Advanced: The seller, Chicago-based housing investor Magnolia Capital, bought the property in 2018 for $88.3 million, or about $295,238 per unit, property records show. It then put in an additional $3 million in upgrades over the following years, according to the Business Journals.
The buyer plans to implement “light” renovations of its own, though exact details were not immediately available.
“It’s rare to find such a well-built, podium property like this for under $300,000 a unit,” Rick Julian, Advanced CEO, said in a statement. “We haven’t seen that kind of pricing in over a decade.”
Advanced secured a nearly $40 million Freddie Mac loan toward the purchase, arranged by JLL Capital Markets’ Kevin MacKenzie, Greg Brown and Charlie Vorsheck. JLL Capital Markets’ Blake Rogers, Kevin Sheehan, Ryan Fitzpatrick, Chelsea Jervis, C.J. Angle, Alexandra Caniglia and Kip Malo handled the trade.
Advanced currently owns more than 12,000 multifamily units in Southern California, yet the purchase of Canvas LA is a proverbial notch in its belt as the final transaction of its most recent acquisition fund, according to the firm. Advanced plans to now open a new fund to the firm’s “friends and family” as it seeks further growth, Julian added.
Indeed, Advanced has been busy in 2024, in both cultivating its portfolio and its relationship with Freddie Mac.
In June, the firm secured a $60 million Freddie Mac loan toward two of its properties in Orange County: $40 million for Serena Vista Apartments in Fountain Valley, and $20 million for Villa del Sur in Santa Ana, which together total 284 units.
Earlier this year, Advanced paid $234 million to Camden Property Trust for a 714-unit multifamily complex in Costa Mesa, which it appropriately renamed The Grand Costa Mesa. Advanced likewise landed a $150.8 million Freddie Mac loan toward the acquisition.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
