Advanced Real Estate Services Acquires 120-Unit Multifamily Property in Riverside
July 21, 2020
Advanced Real Estate Services Inc (ARES) has been busy during the past four months, having acquired a new multifamily asset while also completing refi loans on five others along with forming a new investment fund.
In Riverside, ARES purchased a 120-unit multifamily property for $25.85 mil, or $215.4k/unit. The property is located at 3900 Fir Tree Dr, about a mile east of the firm’s 777-unit Corona Pointe Resort Apartments.
The new acquisition is located in the City of Riverside about a mile east of their 777-unit Corona Pointe Resort Apartments. Previously named “Sierra Pines”, ARES has re-branded the asset as “The 3900 Apartments.” ARES plans to spend over $6 mil on a complete renovation of the property.
The property was built in 1985 and spread over 2.5 acres near the corner of La Sierra and Magnolia Ave. Along with upgrading the units, ARES plans to enhance the existing amenities which include a pool, spa, tennis courts, clubhouse, and grassy open space.
The sale was brokered by Margie Molloy and Bruce Funiss of Berkadia Real Estate Advisors, who repped both parties in the deal. ARES obtained an acquisition loan from Commercial Bank of California.
“This new acquisition is located in the Inland Empire, which has recently been one of the top performing rental markets in the Country.” said ARES Co-Founder and President, Richard Julian. “This is our second recent acquisition there, bringing us to nearly 1,400 units in that sub-market.”
This is not the only asset ARES plans to purchase in the coming months. They just completed a refinance pool of five properties for approximately $204 mil through Freddie Mac. Mike Elmore with Northmarq Capital arranged the financing.
ARES plans to use the proceeds from the refinancings to create a fund to buy additional multifamily assets. It is estimated the fund will be between $150 mil to $250 mil when closed out later this year.
“As we have done for almost 40 years, we will be targeting multifamily assets in Southern California” said Julian. “The only difference from how we have operated in the past, is that we will be using a fund structure rather than raising the equity on a single asset basis. We will look to buy a mix of value-add and core properties. We feel this discretionary fund will give us a competitive advantage in the tight, Southern California market.”