Advanced Real Estate Secures Newhope Village, Expands Multifamily Empire in Southern California
In a notable expansion of its sizable portfolio within the Southern California region, Advanced Real Estate has announced the acquisition of Newhope Village apartments in Irvine, California. This latest acquisition further cements Advanced’s presence in the multifamily apartment industry, which already boasts ownership of more than 12,000 units in the area.
Newhope Village is a gated complex showcasing a range of sought-after amenities, including a swimming pool, fitness center, and outdoor play areas. Through this strategic move, Advanced has retired a substantial $9.5 million HUD loan, setting the stage to secure additional debt financing that will bolster its already substantial $100 million+ fund.
Rick Julian, CEO of Advanced Real Estate, articulated the strategic relevance of this acquisition, highlighting the operational synergies it will foster. “Newhope Village fits perfectly with our surrounding properties. We now have over 1,750 units in the city of Santa Ana,” stated Julian. “This creates even more efficiencies with management and renovations.” This remark underscores the company’s focus on strategic localization and maximizing operational efficiency.
A comprehensive renovation plan is in the offing for Newhope Village, promising significant property enhancements ranging from the installation of in-unit washer-dryers to complete overhauls of cabinetry, flooring, and fixtures. Carried out by R3 Construction and overseen by Advanced Management Company, both in-house entities of Advanced, this plan is a testament to the firm’s capabilities in elevating property value through targeted improvements.
This addition to Advanced’s portfolio heralds the further growth of their newest Opportunity Fund (Advanced Fund 24-3) following last month’s acquisition of The Cove, a 138-unit property in West Covina. Advanced’s acquisition strategy leverages smart investment approaches like the 721 contributions, offering tax-deferred benefits to previous property owners. In Newhope Village’s case, the former property owners have transitioned to partnership status within the fund, thus diversifying their investment profile. Paul Julian, President of Advanced and son of CEO Rick Julian, explained the mutual benefits of this arrangement, stating, “We were able to acquire this property through a 721 contribution, which allowed a tax-deferred transaction for the family who owned it. They are now partners in our fund and diversified among the other assets.”
Evidently, Advanced Real Estate is not only intent on growth through acquisition but is also keenly attentive to the fiscal advantages and portfolio diversification opportunities for all stakeholders involved. As Rick Julian aptly pointed out, the firm’s doors are open to new investments from a growing network that extends beyond 1,000 members, embracing contributions ranging from cash, retirement investments, to property assets.
This acquisition, therefore, not only signifies a single transaction but unfolds as part of Advanced Real Estate’s overarching investment narrative— one that is marked by strategic acquisitions, judicious fund management, and the socio-economic upliftment of communities through enhanced property offerings.