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LAKE FOREST, CA-Advanced Real Estate Services has increased its Orange County apartment portfolio to more than 5,000 units with the acquisition of two complexes totaling 203 units for $32 million. The new properties are the 106-unit Sundial Apartments at 2704 W. Ball Rd. in Anaheim and the 97-unit Park La Palma Apartments at 7835 Oleander Circle in Buena Park.

Advanced, which is now among the 10 largest apartment owners in Orange County, intends to fully renovate both of its newly acquired properties, according to Rick Julian, president of the locally based company. “Both of these properties offer a true value-added opportunity for our investors,” Julian comments.

The extensive renovation that is planned will be completed by Advanced’s construction division, called R³ Construction Services. The upgrades will include granite countertops, new hardwood cabinetry manufactured by R³, wood flooring, forced air conditioning, accent décor and custom lighting.

Frank Holloway, president of both Advanced Management Co. and the construction division, says the company’s goal in renovating the properties with its own in-house operation is “to fine-tune efficiencies” during the renovation process. By doing so, Holloway explains, the company can create apartment units that “not only compete with, but exceed new apartment construction.”

The two sales were brokered by Shane Shafer of the Irvine office of Sperry Van Ness, who represented the sellers in both deals. Financing for both acquisitions was arranged by Michael Elmore of NorthMarq Capital Inc.’s Newport Beach office.

Advanced says that these two latest transactions are the beginnings of a buying spree in which the company hopes to grow its more than 5,000 units to more than 6,000 over the next two years. Julian and Advanced recently completed $105 million in refinancing on three properties in the company’s portfolio through NorthMarq in an effort consolidate debt and raise funds to acquire additional properties in the Southland.

Julian notes that the refinance generated more than $60 million in cash for reinvestment. That $60 million, with leverage, creates more than $150 million for future multifamily acquisitions in addition to existing investor funds.

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