Advanced Real Estate recently bought a 210-unit multifamily property on the western edge of downtown Los Angeles for $62 million, an estimated 30% discount compared to its previous sale. It was the final purchase of Advanced Real Estate’s most recent fund.
The Irvine-based company bought Canvas LA from Magnolia Capital for about $295,000 per unit, according to CoStar data.
Advanced Real Estate CEO Rick Julian said Canvas LA was one of the best real estate deals he’s witnessed in decades.
Company President Paul Julian told the Business Journal that Canvas LA was Advanced Real Estate’s first property within the city of Los Angeles. He added the discounted price was the result of Advanced Real Estate’s fund structure.
Advanced Real Estate’s portfolio, however, does have, dozens of other properties in Orange County and southeast Los Angeles County.
Magnolia Capital bought Canvas LA, located at 138 N. Beaudry Ave., from LaSalle Investment Management in 2018 for $88.3 million, per CoStar data.
“It’s rare to find such a well-built podium property like this for under $300,000 a unit. We haven’t seen that kind of pricing in over a decade,” Rick Julian said.
Advanced Real Estate confirmed it would make “light renovations of the property,” where tenants have access to amenities such as a pool with cabanas, gym, cardio studio, game room, office space, screening room and a sky deck.
The Orange County real estate company used an investment fund to buy Canvas LA and several other properties in Southern California, including the 158-unit residential high-rise at Edison Long Beach and 714-unit The Grand Costa Mesa.
Advanced Real Estate plans to launch a new investment fund to help expand its Southern California portfolio, per Paul Julian, adding he hopes it exceeds $200 million.
The just closed fund raised $195 million, Paul Julian told the Business Journal.
Blake Rogers, Kevin Sheehan, Ryan Fitzpatrick, Chelsea Jervis, CJ Angle, Alexandra Caniglia and Kip Malo of JLL Capital Markets brokered the sale.
Advanced Real Estate bought Canvas LA with a nearly $40 million loan, with 5.12% for seven years, from Freddie Mac.
The financing was arranged by Kevin MacKenzie, Greg Brown, Charlie Vorsheck of JLL Capital Markets.
