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Advanced Real Estate Closes Out 2023 with $234 Mil OC Multifamily Buy

12/29/23

Advanced Real Estate closed out the year with the purchase of a 714-unit multifamily community in Orange County in what we’re told stands as the largest single apartment property to sell in Southern California in all of 2023. The asset, Camden Martinique, was sold by Camden Property Trust in a $234 mil transaction ($327.7k/unit).

The property is located at 2855 Pinecreek Dr in Costa Mesa, across the street from Orange Coast College, two miles from South Coast Plaza, and only four miles from the world-famous harbors and beaches of Newport and Huntington. Advanced is rebranding the property as “The Grand Costa Mesa” and has budgeted $45 mil to transform the community into one of the most desirable properties in the area.

“Very few large properties trade in Orange County, especially in a premier location like Costa Mesa” said Advanced CEO, Rick Julian. “The barriers to entry and replacement costs are so high, an asset like this can’t be duplicated at this basis, even with the extensive capital proposed for renovations.”

According to Advanced, the property will undergo an extensive transformation, with resort-style pools and spas, a re-imagined club house, expansive dog park along with several gathering and BBQ areas. Washers and dryers will be added to every unit, and the interiors will be modernized with new cabinetry, countertops, flooring, fixtures, and contemporary paint-scheme. The renovations will be completed by Advanced’s in-house renovation firm, R3 Construction Company. Property management will be handled by their in-house, Advanced Management Company (AMC).

JLL’s Senior Managing Director Blake Rogers, Managing Director Ryan Fitzpatrick, Directors Chelsea Jervis and CJ Angle and Associates Carter Jones and Audrey Souders represented the seller in the transaction. Executive Managing Director Kevin Mackenzie, Senior Managing Director Greg Brown, Director Charlie Vorsheck and Analyst Kyle White with JLL’s Capital Markets Debt Advisory Team arranged a $150.8 mil Freddie Mac loan at a fixed interest-rate of 5.95% for 10 years, with full-term interest-only payments. The loan will be serviced by JLL Real Estate Capital LLC, a Freddie Mac Optigo℠ lender.

This is the third 2023 property acquisition by Advanced, who also purchased the Edison Apartments in downtown Long Beach on March 31st, 2023. The Edison is a 12-story former high-rise office building, converted to luxury apartments. They also purchased the 264-unit, Surf House Apartments in Huntington Beach in September. With these acquisitions, Advanced was the most active buyer of apartments in Southern California in 2023.

“We couldn’t have asked for three more prime assets to add to our Southern California Portfolio this year” added Paul Julian, Rick’s son and President of Advanced. “The Edison, Surf House and The Grand are all in coastal locations with terrific freeway access and surrounded by irreplaceable amenities and commerce.”

The nearly 12,000 apartment units owned and operated by Advanced are all located in Southern California. “This allows us to efficiently manage and renovate our assets. It also mitigates the risks associated with buying out of State” continued Paul Julian.

Advanced is unique in that their funds come from private investors; they don’t utilize institutional capital. Rick Julian added, “We raise all capital from “friends and family” investors. This group has now grown to almost 1,000. We allow them to use their retirement funds in a creative structure which has provided our investors exceptional returns.” Advanced is a long-term holder of their assets and returns capital to their investors through cash-flow and periodic refinancing. Advanced is actively looking for more properties to purchase or to absorb into their growing portfolio through creative contribution structures.




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