Advanced Spends $96M for Multifamily

RIVERSIDE, CA-Advanced Real Estate Services, Inc. (ARES) of Irvine has finalized the purchase of the Corona Pointe Apartments, a 714 unit community here.

One of the largest apartment transactions to take place in California this year, the deal comes on the heels of two other major transactions for ARES in the past month; a $150 million refinance of some of ARES' properties and the purchase of the Marquis Apartments in Fullerton.

In the Corona Pointe transaction, ARES assumed nearly $70,000,000 of financing from Fannie Mae. The firm raised an additional $34 million of equity and renovation funds.

“About half of our equity originated from our recent refinance of properties and the other half was new equity” said Rick Julian, founder and president of ARES. “With the renovation funds we plan to upgrade the property to give it more pizazz. The location of Corona Pointe is irreplaceable with direct freeway access and tremendous amenities. We purchased this asset at a fraction of the replacement cost” added Julian.

The property was built in 1986 and features large one and two bedroom renovated units all with full sized washer and dryers, refrigerators, and fireplaces in many units. In the common areas there are 4 pools, 3 tennis courts, business center, fitness center, theater, racquetball court, children's play areas and BBQ areas.

Advanced Management Company (AMC), ARES' in-house management company, will manage the property. “AMC will take over management and immediately begin surveying the residents to make sure our upgrades appeal to their wants and needs. With this acquisition we will own and manage over 7,000 units within a 50 mile radius of this property. We feel this market experience will give us the understanding to operate the asset to its fullest potential” said Julian.

R3 Construction Services, Inc., ARES' in-house construction company, will be handling the upgrades. As reported earlier this year, ARES & R3 moved together into a new 31,000 square foot headquarters in Irvine for increased efficiencies in their operations.

“We have assembled a complete vertically integrated multi-family investment platform. Under one roof we have our executives, acquisition team, asset management, property management and renovation company. We have three general contractors on staff, plumbing, HVAC, wood repair and paint teams as well as a state of the art cabinet shop and fully inventoried warehouse facility. This makes for a seamless process from acquisition, to renovation, to ongoing management.” The seller in the Corona Pointe transaction was represented by John McCulloch, Tyler Martin and Curtis Gardner of ARA Real Estate Investment Services.

Advanced Real Estate Services, Inc., Advanced Management Company (AMC), and R3 Construction Services, Inc., employ over 400 personnel and own and manage over 7,000 multi-family units in Southern California. The properties are primarily in Orange and Los Angeles Counties as well as the Inland Empire. The firm also completes third-party Asset Management, Property Management, and Construction services for other multi-family operators in Southern California.