Multifamily - Debt, Sale

Advanced Real Estate purchases Mission Lofts, 212 unit/newly-built property in Riverside, California

Northmarq provided financing for the property via its in-house Fannie Mae team

IRVINE, CALIFORNIA (November 5, 2021) – Advanced Real Estate (Advanced) paid just over $80 million for the 212-unit apartment building near Downtown Riverside. The property, called Mission Lofts was completed in 2019 by the Realm Group, of Newport Beach.  It features a modern design with plentiful amenities such as pool, fitness center, lounge, business center and dog park. 

“We were attracted to the property due to its ideal location with immediate freeway access next to commuter rail and a short walk to Downtown Riverside and the famous Mission Inn,” said Richard Julian, CEO of Advanced. “The Inland Empire has been one of the best-performing markets in the country over the past five years and we don’t see any signs of slowing. This asset sits right in the capital of the Inland Empire and benefits not only from the immense local job growth, but also from commuters to Los Angeles and Orange County,” he added.

Northmarq’s Inland Empire Multifamily Report reinforced the Inland Empire’s strong standing, noting, “The Inland Empire is outperforming most other large metro areas in California. Apartment vacancy has remained tight and should tick lower in the coming quarters, as renter demand gains momentum. Rents jumping, vacancy holding steady, and renter demand fueled by a rapid pace of job growth as the economy continues to re-open contributed to the positive outlook. Read the full report.

Mike Elmore, Alex Kane, Joe Giordani, Brendan Golding and Alvin Cao of NorthMarq’s Newport Beach office arranged a Fannie Mae loan for Advanced. “We were able to secure a 10-year, full term interest-only loan through Fannie Mae. Fannie was able to accommodate a quick closing with aggressive pricing to beat out the competition,” said Elmore.

The transaction marks more than $3 billion in closings between Northmarq and Advanced Real Estate, including the $283 million refinancing in August and September of a seven-property multifamily portfolio totaling 1,353 units located throughout Southern California.

This purchase utilizes the remaining capital in Advanced’s $120,000,000 Fund 20-1 they raised last year. With it, they purchased a total of approximately $332,000,000 of apartments including Mission lofts in Riverside, Axis 2300 in Irvine, The Edward in Westminister, The Lincoln on Grand in Anaheim, Riverhouse in Santa Ana and The James in Riverside. These properties grew Advanced’s portfolio by 1,027 units.  

They are now in the process of finalizing their Fund 21-2. “We may actually end up with a larger Fund this year as there is strong demand from our investors to increase their multi-family holdings. The stock market is frothy and unpredictable, there is little yield elsewhere, and the other asset classes have not proven to be as safe and as lucrative as apartments,” stated Julian.

Advanced is actively looking for properties in Southern California to purchase with this new Fund 21-2. They are focused on large assets in Orange County, Los Angeles County and the Inland Empire where all of their current holdings reside. “We are in the most supply-constrained market in the Country with irreplaceable weather, a diverse economy and workforce. We will continue to grow here in Southern California,” said Julian.   

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.