Advanced Real Estate an Irvine-based apartment investor, last month paid $24.6 million for a 68-unit apartment complex in Huntington Beach.
The nearly 79,000-square-foot community, dubbed Beachpoint Apartments, traded for roughly $361,000 per unit.
The deal marks the first trade for the property, at 7886 Beachpoint Circle, which is just off Beach (39) Boulevard.
The seller, Yuba City-based property manager Trident Corp., has owned the building since its completion in 1981, according to data from real estate market tracker CoStar Group Inc.
The property joins Advanced’s X Fund, which the company describes as an alternative to a traditional 1031 exchange.
Property owners contribute their assets to the fund in exchange for partnership shares.
By doing so, “they can avoid the headaches of property management and mitigate their liability,” Advanced President Paul Julian told the Business Journal.
Advanced counts a portfolio of almost 12,000 residential units and a 45-year track record of operating properties.
The company plans to upgrade the property with new paint, signage, drive-entry enhancements and an amenities overhaul. The complex’s interiors will receive new flooring, fixtures and the addition of washers and dryers.
The off-market trade was brokered by Triqor’s Gary Tolfa. Financing for the deal was provided by Farmers & Merchants Bank.
As of last August, around $75 million worth of smaller properties have joined X Fund.
Other product types eligible for X Fund include industrial, retail and rental homes, officials said.
The company aims to sell the portfolio and execute a 1031 exchange into larger and “more efficient properties,” it said.
Advanced’s portfolio includes several apartment communities that comprise of 400 to 750 units.
Among the latest large properties it acquired is a 714-unit apartment complex, dubbed The Grand in Costa Mesa, which the company paid $234 million for last December.
That deal was the priciest multifamily trade last year in Southern California and the sixth largest in the nation.
Advanced is currently on the hunt for more acquisition opportunities, particularly for its main fund.
“We’re in acquisition mode,” Julian said. “As long-term holders, we’re able to transact during this turbulent market,” which has seen slower deal volumes to high interest rates.
