Advanced Real Estate Acquires 126-Unit Multifamily Community in Rowland Heights Using 721 Tax-Deferred Structure
IRVINE, CA — Advanced Real Estate has acquired the 126-unit Casa La Paz apartment community in Rowland Heights, California, the firm announced June 3, 2026. The property has been rebranded as "The Rowland" and is slated for a comprehensive renovation program encompassing exterior improvements, upgraded unit interiors, and enhanced community amenities.
The acquisition represents the fifth multifamily property purchased in the past eight months by Advanced Fund 24-3, the firm's most recent investment fund. Advanced Real Estate's portfolio now encompasses more than 13,000 apartment units across Southern California, with a reported market value of $5 billion.
A 721 Exchange Structure Drives the Multifamily Real Estate Acquisition
The transaction was structured using what Advanced Real Estate describes as a 721 tax-deferred "exchange and contribution" arrangement — a mechanism that allowed the property's former ownership group to contribute the asset into Advanced Fund 24-3 in exchange for partnership interests in the fund, rather than receiving an outright cash payment. Some members of the seller's partnership opted for a cash payout at closing, which Advanced provided.
"Many apartment owners want to preserve equity and defer taxes while still transitioning away from the inherent risks of ownership as well as the day-to-day management responsibilities," said Richard Julian, CEO of Advanced Real Estate. "Our structure allows owners to contribute their property into a solid and diversified institutional-quality portfolio while maintaining investment participation for the long term. It's a strategy we've successfully implemented across numerous acquisitions."
Advanced Real Estate has increasingly utilized this platform as an alternative exit strategy for multifamily owners seeking tax efficiency, estate planning flexibility, and continued real estate participation without active operational responsibilities.
The Rowland Heights deal marks the second time Advanced Fund 24-3 has employed the 721 structure. The firm previously used it to acquire Newhope Village, a 104-unit community in Santa Ana, in late 2025.
Advanced Fund 24-3: Rapid Multifamily Deployment Across Southern California
The Rowland acquisition brings the total unit count added through Advanced Fund 24-3 to 761 units across five properties in roughly eight months. The fund's prior acquisitions include:
- The Cove — 138 units in West Covina, acquired October 2025 for $41 million
- Newhope Village — 104 units in Santa Ana, acquired late 2025 via 721 contribution
- Sky Hollywood (formerly Columbia Square Living) — 200 units in Hollywood, acquired April 2026
- Jardine Hollywood — 193 units in Hollywood, acquired April 2026
The April 2026 Hollywood acquisitions — Sky Hollywood and Jardine Hollywood — were described by Advanced Real Estate as the largest multifamily purchase made by any firm in Southern California so far in 2026. Together, the two luxury high-rise towers total 393 units and were financed through two separate, uncrossed loans totaling $141.4 million from Freddie Mac, carrying a 5.17% fixed interest rate for 10 years with interest-only payments. Those loans were arranged by JLL Capital Markets.
Advanced Real Estate funds its investments through a private equity network the firm describes as a "friends and family" base of more than 1,000 investors.
San Gabriel Valley Multifamily Market: Location and Value-Add Rationale
The Rowland is located in Rowland Heights in the San Gabriel Valley. Advanced Real Estate cited the area's regional demographics, proximity to major employment centers, and access to retail, dining, and transportation corridors as factors supporting the acquisition.
"Rowland Heights represents a highly desirable suburban Southern California rental market because of its central location and strong long-term fundamentals," said Paul Julian, President of Advanced Real Estate. "We see substantial upside by repositioning this property through thoughtful renovations and professional management while creating long-term value for both residents and investors."
At The Cove in West Covina — which Advanced acquired for $41 million, or under $300,000 per unit — the firm noted that the submarket had seen no significant new multifamily development in more than 12 years.
No sale price, price per unit, cap rate, or debt terms were disclosed for The Rowland acquisition.
In-House Management and Construction to Execute Business Plan
Property management at The Rowland will be handled by Advanced Management Company (AMC), the firm's in-house management arm. Renovations will be administered by R3 Construction Services, Advanced Real Estate's affiliated construction company.
Advanced Real Estate was founded in 1981 and describes its core strategy as acquiring value-add multifamily properties, renovating them, and managing them for the long term within its Southern California market focus.
