Advanced Real Estate Expands Portfolio with $41 Million Acquisition of The Cove at West Covina
Advanced Real Estate, a seasoned multifamily investment firm based in Irvine, has recently broadened its property portfolio with the strategic acquisition of The Cove at West Covina. The transaction, valued at $41 million, is the latest addition to their impressive Southern California collection, now numbering over 12,000 residential units. This move is inline with Advanced Real Estate’s well-established strategy focusing on suburban assets with notable value-add potential and robust, enduring market fundamentals.
The Cove’s appeal is enhanced by its spacious units, each averaging over a formidable 1,000 square feet. CEO Rick Julian remarked, “The Cove is well located, with large units averaging over 1,000 square feet. It’s rare to find such an attractive unit mix for under $300,000 per unit.” This acquisition aligns with the firm’s expertise in identifying properties that promise both appreciable enhancements and solid investment potential.
Understanding the local market dynamics is crucial for investment firms, and Advanced Real Estate showcases this acumen through the observant remarks of President Paul Julian who notes, “West Covina has been a historically strong rental market with abundant retail and employment and very little new competing supply. The last significant new multifamily development was completed over 12 years ago.” He sees the intrinsic worth in the low-density offerings of the San Gabriel Valley, underlining the judicious strategy of leveraging market scarcity.
Investing in community and resident lifestyle, Advanced plans comprehensive renovations for The Cove, which includes modernizing apartments with state-of-the-art appliances and a fresh design palette. Their in-house companies, R3 Construction and Advanced Management Company, will spearhead these revitalizations. The gated community already offers enviable amenities, from dual resort-style pools to a fitness center and community spaces designed for interaction and leisure.
This acquisition marks an inaugural purchase for Advanced’s Opportunity Fund (Advanced Fund 24-3), and the firm anticipates additional acquisitions to enrich its Southern California portfolio in the forthcoming period. Their investment philosophy emphasizes accessibility, outlining a unique, tax-efficient structure that draws a growing number of investors into their “friends and family” network, now boasting over 1,000 participants. “We have a unique tax-efficient structure, allowing investors to use their trapped retirement funds for the bulk of their investment and leverage a smaller personal contribution of cash,” clarifies Rick Julian.
Advanced Real Estate’s strategy and its new fund reflect a focused approach to growth—methodically identifying and capitalizing on under-appreciated assets, improving these properties to realize their full market potential, and providing accessible investment opportunities to a network of investors eager to engage with the thriving multifamily sector.