Advanced Real Estate Expands Portfolio with Newhope Village Acquisition

In an impressive move, Advanced Real Estate has successfully acquired the Newhope Village apartments, which adds 104 units to their already expansive portfolio of over 12,000 units scattered throughout Southern California. This acquisition firmly positions the company as a significant player in the local real estate market, particularly in Santa Ana, where they now own a total of over 1,750 units.

Rick Julian, CEO of Advanced Real Estate, stated, "Newhope Village fits perfectly with our surrounding properties. We can now achieve greater efficiencies in both management and renovations." The strategic acquisition reflects Advanced's commitment to expanding its footprint in the Southern California real estate sector, which is characterized by both opportunity and competition.

Planned Renovations and Upgrades

With the acquisition of Newhope Village, Advanced Real Estate is not just adding new units but also planning significant renovations to the property. Among the upgrades are updates to in-unit features like washers and dryers, new cabinetry, flooring, fixtures, appliances, windows, and a stylish modern paint scheme. These renovations will be carried out by Advanced's in-house construction company, R3 Construction, ensuring high-quality execution.

The Newhope Village apartments also feature a range of amenities designed to enhance tenant satisfaction, including a pool, a fitness center, and a play area for children, further elevating the attractiveness of the property to prospective renters.

Strategic Financial Moves

This acquisition marks the second purchase made through the company's latest investment vehicle, Advanced Fund 24-3. Only a month earlier, Advanced Real Estate secured The Cove, a 138-unit property in West Covina, and planning is underway for additional acquisitions in the Southern California region throughout the coming year. Paul Julian, President of Advanced and son of Rick Julian, mentioned that the acquisition was made possible through a distinctive 721 contribution method, allowing for a tax-deferred transaction for the previous property owners. This innovative approach not only facilitated the acquisition but also transformed the former owners into partners in Advanced’s fund, diversifying their investments across multiple assets.

Building a Network of Investors

Advanced Real Estate extends its investment opportunities to a broader community, including friends and family networks. Currently, their investor community comprises over 1,000 individuals, and Rick Julian emphasized that the company is always seeking to welcome new investors. This extended network is encouraged to participate through cash investments, retirement plans, or even property contributions, as demonstrated by the Newhope Village acquisition.

Financial Overview

In conjunction with the property purchase, Advanced has successfully retired a $9.5 million loan from HUD, paving the way for future financing endeavors. Plans are underway to place additional debt on the property, which would generate extra capital for their $100 million-plus investment fund. This kind of financial maneuvering illustrates how Advanced is adept at leveraging its assets to foster growth and profitability.

About Advanced Real Estate

Advanced Real Estate, which was established in 1981, has a robust presence in the Southern California market, managing over 12,000 apartment units valued at more than $4 billion. The company's investments are funded through private equity, with an operational strategy relying heavily on in-house management and construction services to ensure that all renovations meet the highest standards. This integrated model not only enhances efficiency but also aligns with their objective of acquiring and effectively managing value-add properties for long-term success.

For those interested in learning more about investment opportunities or exploring partnerships with Advanced Real Estate, additional information can be found on their website: advancedrealestate.com.