A multifamily investor based in Orange County has picked up a bargain from a Chicago outfit that looks set to exit inner-city Los Angeles with a $30 million haircut.
Advanced Real Estate in Irvine paid $62 million for the 210-unit Canvas LA apartment building at 138 North Beaudry Avenue in the Temple-Beaudry district just west of Downtown, the Commercial Observer reported. The price of $295,000 per unit represents a bargain for relatively new multifamily developments in the city,
It also looks to be a trim for the seller, Chicago-based Magnolia Capital, which paid $88.3 million for the property in 2018 — about $395,000 per unit. The firm has hit rough sledding lately in its home market.
“It’s rare to find such a well-built, podium property like this for under $300,000 a unit,” Advanced Real Estate CEO Richard Julian said in a statement. “We haven’t seen that kind of pricing in over a decade.”
The new owner plans “light” renovations, according Julian, who did not offer specifics.
Advanced got a $40 million loan from Freddie Mac on the deal. The company has a portfolio of about 12,000 multifamily units spread over Southern California.
The firm earlier this year bought a 714-unit apartment complex in the Orange County municipality of Costa Mesa from Camden Property Trust for $234 million, or about $328,000 per unit.
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