Advanced Makes a Splash in Huntington Beach with $96 Million Purchase
Advanced Makes a Splash in Huntington Beach with $96 Million Purchase
Irvine, CA – Advanced Real Estate Services, Inc. (Advanced) has added another major multi-family asset to its growing Orange County portfolio. Formerly known as Citron House, the new acquisition is in Huntington Beach, on Warner Avenue just west of Beach Boulevard. The 264-unit apartment community is two miles from the Bella Terra Mall, close to Huntington’s world-famous beaches, and Huntington Harbour. Advanced is rebranding the property as “Surf House” and has budgeted $7,000,000 to transform the asset into one of the most desirable properties in the area. This method of purchasing assets, adding value through renovations and quality management, then holding long-term, has been a successful approach for Advanced for over four decades.
“Very few large properties trade in Orange County, especially in a coastal city like Huntington Beach” said Advanced CEO, Rick Julian. “The barriers to entry and cost to replace are so high, that it would be impossible to duplicate this low-density asset.”
According to Advanced, the property will be given an exterior facelift with new windows, balcony upgrades, paint, pool area overhaul (including the addition of large cabanas), new signage, and drive-entry enhancements. The interiors will be modernized with new cabinetry, countertops, flooring, fixtures, and a contemporary paint-scheme. The renovations will be completed by Advanced’s in-house renovation Company, R3 Construction Services, Inc. Property management will be handled by their in-house management company, Advanced Management Company (AMC).
In the transaction, Advanced assumed an approximately $53,000,000, Freddie Mac loan, which has a remaining term of approximately 1.5 years and bears interest at 4.22%. “We plan to complete as much of the renovation as possible while the existing loan is in place. The plan is to refinance with a larger loan in 2025 and use the excess proceeds to purchase more assets” stated Julian.
This is the second property acquisition from the current Advanced Fund 21-2, which also purchased the Edison Apartments in downtown Long Beach on March 31st, 2023. The Edison is a 12-story former high-rise office building, that was converted to luxury apartments in 2016.
“After the Surf House purchase, we still have over $100,000,000 of remaining discretionary capital in this Fund before starting our next Fund. We are diligently searching for additional acquisition opportunities here in Southern California” added Paul Julian, Rick’s Son and President of Advanced.
All the nearly 11,000 apartment units owned and operated by Advanced are located in Southern California. “This allows us to efficiently manage and renovate our assets. It also mitigates any risks of buying out of State” continued Julian.
The sale was brokered by Geoff Boler, Johnathan Merhaut and Eugene Chong from the Newport Beach office of Eastdil Secured.
About Advanced Real Estate Services, inc. (Advanced)
Advanced was formed in 1978 and currently owns and operates nearly 11,000 apartment units throughout Southern California with a market value of over $4 billion. Advanced funds their investments with private equity. All property management and renovation are carefully administered through their in-house management and construction arms. This vertically integrated approach allows Advanced to most efficiently execute their business plan of acquiring value-add properties, renovating them to the highest standards, and then effectively managing them for the long-term. To learn more about Advanced please visit www.advancedrealestate.com.
