"We will be able to capitalize on operational efficiencies of having 300 units in one location," Julian says. He points out that Advanced also owns the 104-unit Porto Bella Apartments one block away.
The Tierra Palms property, which was more than 90% occupied at the time of the sale, is a two-story complex at Studebaker Rd. and consists of 32 two-bedroom units and 112 one-bedroom units. ARES assumed an existing Fannie Mae financing with a fixed rate of 6.08%. Advanced Management Co. will take over running the day to day operations of the property.
The Harris Group of Marcus and Millichap represented the sellers in the transaction, which was the fourth multifamily acquisition closed by ARES in the last two quarters. The acquisitions total over $75 million, and ARES continues to look for more properties, according to Julian.
"We have a significant amount of equity that needs to be placed," Julian says. He explains that the Lake Forest-based company is acquiring the apartment complexes in Southern California with a large base of privately placed equity and has been investing in the multifamily market for nearly 30 years. Its current portfolio includes approximately 6,000 rental units and 200 acres ofdevelopable land, all in Southern California.
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