In a transaction that underscores the demand for multifamily properties in Southern California, Irvine-based Advanced Real Estate has acquired a 714-unit apartment property in Costa Mesa. According to industry reports, the property was purchased from Camden Property Trust for approximately $234 million, or $327,730 per unit, marking one of the largest apartment deals in the state during 2023.
Situated at 2855 Pinecreek Drive, the property is known as The Grand Costa Mesa and offers a mix of studio, one-bedroom and two-bedroom units. The property is also home to several amenities, including a pool and spa, fitness center, laundry facilities and more. Rental rates at the property begin at $2,072 per month.
To facilitate this purchase, Advanced secured a $150.8 million fixed-rate loan from Freddie Mac with interest-only payments over ten years. Advanced also is planning a $45 million renovation to the apartment complex, which will include upgraded amenities and the addition of a dog park, according to Costar. Moreover, plans are underway to outfit all units with washers and dryers while contemporizing apartment interiors.
Founded in 1981, Advanced Real Estate develops, acquires and manages properties throughout Southern California. The most recent acquisition adds to the firm’s growing portfolio, which spans 10,300 multifamily units, according to its LinkedIn profile.
Camden Property Trust was founded in Houston in 1982 with a focus on the acquisition, development and management of multifamily properties throughout various markets in the United States. As of November 2023, Camden Property Trust owned and operated 172 properties consisting of 58,961 apartment homes across the country.
