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NORWALK, CA-Advanced Real Estate Services of Lake Forest has acquired the 153-unit Courtyards apartment complex at 12401 Studebaker Rd. from Los Angeles-based Kennedy Wilson for $22.9 million in a tenant-in-common transaction, assuming a $17 million loan at 5.32%. Rick Julian, president of Advanced, says that the existing fixed-rate financing on the property was one of a number of factors that appealed to the Lake Forest-based buyer.

Julian explains that Advanced, which owns nearly 1,000 units within three miles of the Courtyard Apartments, gains the benefit of a concentrated market presence with the purchase. In addition to the favorable financing, other factors included the close location of the buyer’s Anaheim-based construction company, R3 Construction Services, which “makes this property a perfect candidate for full renovation and repositioning,” Julian says.

The Courtyards is a two-story garden-style complex on approximately 5.5 acres at the junction of the 105, 605 and 5 freeways. Its 153 units are housed in 16 two-story and one-story wood-frame buildings. The complex, which was 95% occupied at the time of the sale, features apartments ranging from one to three bedrooms in seven floor plans.

Advanced is actively pursuing multifamily acquisitions right now, according to company vice president Robb Cerruti. He tells GlobeSt.com that the investment and development firm’s partnerships are funded by private investors, so the stagnation in the capital markets has not affected the firm from an equity perspective.

The sale is one of the relatively few tenant-in-common deals that have closed lately. Advanced doesn’t usually sponsor TIC deals, but it turned to the TIC structure for this particular deal to accommodate a couple of its private investors 1031 exchanges.

Both Advanced and Kennedy Wilson were represented by Stewart Weston of Marcus & Millichap in the deal, which marked the third large asset to change hands between the two companies. ARES acquired the 565-unit Lakewood Manor Apartments in Lakewood and the 256-unit Somerset Apartments in Montebello from Kennedy Wilson in the past deals.

Advanced owns or operates more than 5,500 units in Southern California. Property management for its new asset will be provided by Advanced Management Co.

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