Advanced Real Estate acquires San Gabriel Valley apartments

June 4, 2026 - 10:24

Advanced Real Estate has completed the acquisition of a 126-unit apartment community in Rowland Heights, located in the San Gabriel Valley. The deal was structured as a 721 exchange, a tax-deferred transaction that allowed the previous family owners to retain a partnership stake in the property.

The property, which sits on a prime infill site near major employment centers and transit corridors, includes a mix of one- and two-bedroom units. Advanced Real Estate plans to implement capital improvements to upgrade common areas and unit interiors, aiming to attract tenants seeking modern amenities in a suburban setting with urban access.

The 721 exchange structure is notable because it enables sellers to defer capital gains taxes while maintaining an ownership interest in the asset. In this case, the former family owners will remain as limited partners, benefiting from the property's long-term cash flow and appreciation potential. This approach has become more common in recent years as property owners look for ways to unlock liquidity without triggering a full tax event.

Advanced Real Estate, which focuses on value-add multifamily investments in Southern California, sees the Rowland Heights acquisition as a strategic addition to its portfolio. The area's strong rental demand, driven by limited new supply and proximity to Los Angeles County job hubs, supports the firm's outlook for stable occupancy and rent growth. The company did not disclose the purchase price.