Irvine-based Advanced Real Estate Services Inc. has paid $72.5 million for Alvista Long Beach, a 235-unit apartment complex just off Pacific Coast Highway, near the city’s “Traffic Circle” area.
It’s the first deal in the city for ARES, which owns and operates almost 9,500 units throughout Southern California. The company estimates its rental portfolio has a market value of nearly $3 billion.
The firm paid about $308,000 per unit for the Long Beach complex, which last traded hands in 2015 as part of a larger portfolio deal; it was last owned by a partnership of N.Y.-based Phoenix Realty Group and Blackstone Real Estate Partners, according to news reports.
ARES is planning $6 million in upgrades for the property near California State University-Long Beach. It is renaming it to The Circle Apartments at Long Beach.
The new asset “is in an ideal rental location as it provides easy access to jobs, retail, a major university, and the (405) Freeway,” said Richard Julian, president of ARES.
Changes include upgrades to interior and exterior spaces: new windows, pool area upgrades, an added business center, new flooring, paint, fixtures, and smart locks. The property has three pools, a fitness center, and a lounge.
“We own quite a few properties in the surrounding submarkets and have received a great response from our renovation program. We see this property producing those same results,” Julian said.
“Although Long Beach is seeing an increase of new apartment development, the Traffic Circle submarket has seen almost no new supply in decades.”
Kevin MacKenzie and Greg Brown from JLL’s Newport Beach office arranged a $46.8 million Freddie Mac loan on behalf of ARES for the property.
ARES said it is looking into more value-add acquisitions in Southern California, following a refinancing move earlier this year that freed up some $260 million, “creating a large ‘war chest’ of funds for acquisitions.”
Closer to Home
ARES counts north of 30 communities in Orange County. It also invests in the Inland Empire, most recently paying $42.25 million for the 194-unit Mountain Summit apartment complex in Ontario.
In Corona del Mar, the company has a development of another sort nearing completion, the Aerie luxury condo development next to Ocean Boulevard that was featured in the Sept. 9 edition of the Business Journal. Units there top $10 million.
