Advanced Real Estate acquired two apartment towers in Hollywood from Kilroy Realty for $202 million. The deal included 393 units combined and ranks as Southern California's largest multifamily transaction this year.
The sale reflects shifting dynamics in the multifamily market. Construction pipelines sit at historic lows across the region, tightening supply as demand for rental housing persists. Kilroy Realty, the Los Angeles-based REIT that sold the properties, continues to reshape its portfolio amid changing market conditions.
This transaction signals investor appetite for stabilized multifamily assets in prime markets, even as new construction slows. The Hollywood location offers proximity to employment centers and transit, making existing inventory more valuable to buyers. Prices paid in deals like this one indicate where capital sees long-term rental growth potential.
The timing matters. With fewer new apartments reaching completion, owners of established properties hold stronger negotiating positions. Advanced Real Estate's willingness to deploy $202 million on this deal underscores confidence in Southern California's rental fundamentals despite broader economic uncertainty.