Why Multifamily Investors Are Vying for Anaheim Deals

Anaheim is a hot market for multifamily investment—but opportunities are limited. Advanced Real Estate Services has acquired a 251-unit mixed-use property in Platinum Triangle in Anaheim for $112 million. The firm is an active investor in Anaheim with more than 1,500 units in the market, and it has witnessed first hand the growing demand and competition. We sat down with Paul Julian, president of ARES, to talk about the investment activity in Anaheim and to get an inside look at the deal.

GlobeSt.com: Give me a snapshot of the multifamily activity in this submarket.

Paul Julian: We have heard of only one other property that is potentially going to trade in this submarket this year. Many of the other owners are REITs, which are typically long-term holders. There are also a couple of large, private, local owners in the market with even longer-hold horizons, similar to us. The only sellers are merchant builders who will be selling once their properties are completed. These properties will most likely be snatched up quickly.  The available land for new supply is limited and once the remaining units are built-out this submarket will be like every other in Orange County, highly supply constrained. We see great upside in the market as LT Global and Lennar each add a significant retail base with their developments on either side of our property.  We feel this will provide our residents an exciting neighborhood in which to live.