Advanced Real Estate, a company specializing in multifamily acquisitions and management, has made a significant move in Downtown Los Angeles. The company has purchased the Canvas LA multifamily building at 138 North Beaudry Avenue for $62 million. This building has a total of 210 units and is located approximately a mile and a half southwest of Dodger Stadium. The deal is a bargain for Advanced as the seller, Chicago-based housing investor Magnolia Capital, bought the property for $88.3 million in 2018, or about $295,238 per unit. Magnolia Capital then invested an additional $3 million in upgrades over the next few years, according to Business Journals.
Advanced plans to implement "light" renovations of its own, but specific details are not yet available. The company's CEO, Rick Julian, expressed his excitement about the purchase, stating, "It's rare to find a well-built, podium property like this for under $300,000 a unit. We haven't seen this kind of pricing in over a decade."
Advanced secured a nearly $40 million Freddie Mac loan for the purchase, arranged by JLL Capital Markets' Kevin MacKenzie, Greg Brown, and Charlie Vorsheck. The team at JLL Capital Markets, including Blake Rogers, Kevin Sheehan, Ryan Fitzpatrick, Chelsea Jervis, C.J. Angle, Alexandra Caniglia, and Kip Malo, handled the transaction.
Advanced currently owns more than 12,000 multifamily units in Southern California, and the purchase of Canvas LA marks the final transaction of its most recent acquisition fund. The company plans to open a new fund to its "friends and family" as it seeks further growth, according to Julian.
Advanced has been busy in 2024, both expanding its portfolio and strengthening its relationship with Freddie Mac. In June, the company secured a $60 million Freddie Mac loan for 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 renamed The Grand Costa Mesa. Advanced also secured a $150.8 million Freddie Mac loan for this acquisition.
For more information, contact Nick Trombola at [email protected].
