Irvine, CA – Advanced Real Estate (Advanced) has acquired the iconic Edison – a 12-story former office tower in Downtown Long Beach. The property was originally built in 1960 and meticulously converted to apartments in 2016, while still maintaining its striking mid-century modern architecture. Due to its high-profile location, it formerly served as the headquarters of the Edison Company, the Long Beach Police Department, and City Hall. During its 2016 conversion, the property was divided into 156 apartment units, including 6 added penthouses and a rooftop pool. All electrical, mechanical, and plumbing systems were overhauled and structural enhancements were made. “We are excited to own such a special piece of history,” noted Paul Julian, President of Advanced.
The property sits one block from Ocean Boulevard at the terminus of the Metro Rail A Line (Blue) which has direct access to Downtown Los Angeles. “The location on the edge of the East Village, close to restaurants and transportation makes it prime for a car-less lifestyle,” added Rick Julian, CEO of Advanced. “We are thrilled that this asset will be the one to kick off our newest Fund, Advanced Fund 21-2. We have raised over $160 million from our private network of investor partners. This acquisition required around $30 million of equity. We are now searching for other multifamily acquisitions with the remaining funds.”
Edison boasts dramatic views of the ocean, harbor, mountains, and the LA Basin through 12-foot, floor-to-ceiling windows. This would be cost-prohibitive to replicate in a new building today. The rooftop pool & lounge, game room, large fitness center, colorful bike storage facility, and business center position the property to compete with brand new product. Despite being a transit-oriented building, it still contains ample parking in the onsite four-level garage.
Long Beach has recently earned the moniker of “Space Beach” after a recent influx of aerospace companies. This should bring more jobs and residents to the surrounding communities. Downtown Long Beach is one of only three major California cities to benefit from a waterfront location. Further, Long Beach Harbor combined with LA Harbor, creates the largest commercial port in the US.
“We see Long Beach as a City with tremendous upside. Its location between LA and OC and the Port, with an increase in ecommerce, should allow it to thrive in the long term,” stated Paul Julian. “We have no plans to sell the property as we keep our holdings for the long-term, allowing us to become part of the fabric of the community.”
Cushman & Wakefield’s Executive Vice Chair of Capital Markets, Marc Renard, represented both the seller and buyer in the transaction. A Freddie Mac loan was arranged by Cushman & Wakefield through its subsidiary Greystone.
“The property already has a strong amenity package, modern finishes, high ceilings and commanding views. However, it can benefit from small enhancements that will help it compete with the newer luxury product,” stated Paul Julian. There is an unoccupied prime retail space onsite. Advanced plans to secure a tenant that will be positive for the residents in the building and the neighboring area. “We are pursuing cafes, restaurants, breweries, bars, or a small market for this space. It has great potential with a large patio facing the Metro station.”
About Advanced Real Estate (Advanced)
Advanced was formed in 1978 and currently owns and operates over 10,000 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 in Southern California, 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.