#United States #West Covina #Advanced Real Estate #The Cove

Advanced Real Estate Expands Its Portfolio with a Strategic Purchase

Advanced Real Estate has made a significant move in the Southern California market by purchasing The Cove at West Covina for $41 million. This acquisition, which adds 138 units to the company’s extensive portfolio of over 12,000 units, is indicative of an optimistic approach to the multifamily real estate sector in the region.

Key Highlights of the Acquisition

Rick Julian, CEO of Advanced Real Estate, highlighted the property's appealing characteristics, noting that the units average over 1,000 square feet. With a price of under $300,000 per unit, such opportunities are a rarity in the current market.

Paul Julian, Rick's son and president of the company, elaborated on the strength of the West Covina rental market, stating that the area boasts a strong retail presence, substantial employment opportunities, and minimal competition, with the last significant multifamily development occurring over a decade ago. This underscores the value proposition that Advanced sees in the newly acquired property.

Renovation Plans

The Cove is set to undergo extensive renovations aimed at modernizing the living experience for residents. Planned upgrades include the introduction of in-unit washers and dryers, new cabinetry, flooring enhancements, modern fixtures, updated appliances, and refreshed windows and paint schemes. These improvements will be managed by Advanced's in-house teams, R3 Construction and Advanced Management Company, ensuring top-notch quality and efficiency.

Amenities at The Cove

The property itself is gated and offers an array of amenities designed to enhance the quality of life for its residents. Facilities include:

• - Two pools complete with cabanas,
• - A well-equipped fitness center,
• - Cozy firepits,
• - Garages, and
• - Expansive landscaped areas.

Future Growth Prospects

This transaction marks the first purchase from Advanced's new Opportunity Fund, Advanced Fund 24-3, with intentions to further expand its portfolio through additional acquisitions in the Southern California apartment market over the coming year.

Advanced is also committed to engaging its extensive network of investors, which has grown to over 1,000 members, providing them with unique tax-efficient investment structures that enable the utilization of retirement funds for most investments while allowing for smaller personal cash contributions.

Rick Julian stated, “We are always eager to welcome new investors into our growing family.” This commitment to building relationships with investors aligns with their overarching strategy of sustained growth and portfolio diversification.

The deal also included the assumption of a $21 million Freddie Mac Loan, characterized by a fixed interest rate of 4.75% with interest-only payments for the entirety of the term, further cementing the investment’s structure.

About Advanced Real Estate

Founded in 1981, Advanced Real Estate has cultivated a robust presence in the Southern Californian real estate landscape, owning and managing around 12,000 apartment units valued at over $4 billion. The firm’s investment strategy is primarily funded by private equity, and all aspects of property management and renovations are conducted through its in-house teams, ensuring efficient execution of its business plans focused on value-add acquisitions and long-term property management.

For anyone interested in investing in or selling to Advanced, more information can be found at www.advancedrealestate.com.