Advanced Real Estate Acquires Two Hollywood Apartment Towers From Kilroy Realty for $202M

Why It Matters

The deal underscores aggressive consolidation in a market with historically low new construction, positioning Advanced to capture rising rental demand ahead of major events and a production boom in Los Angeles.

Key Takeaways

• Advanced bought 393-unit Hollywood towers for $202 million.
• Deal is largest Southern California multifamily transaction in 2024.
• Financing includes $141.4 million in 10‑year Freddie Mac loans at 5.17% fixed.
• Properties represent over half of Hollywood’s high‑rise apartment inventory.
• Portfolio now near 13,000 Southern California units, fueling growth strategy.

Pulse Analysis

Hollywood’s multifamily landscape remains tight, with new construction at historic lows, making existing high‑rise assets especially valuable. The two towers acquired by Advanced Real Estate—Sky Hollywood and the Jardine—together provide 393 units, representing more than 50% of the city’s high‑rise rental stock. Their premium penthouses, leasing between $12,000 and $20,000 a month, illustrate the market’s capacity for high‑end rentals, while the broader unit mix offers stable cash flow in a city where housing supply is constrained.

Advanced’s financing strategy leverages $141.4 million in Freddie Mac loans, spread over two 10‑year, fixed‑rate (5.17%) instruments with interest‑only payments. This structure preserves liquidity, allowing the firm to fund cosmetic upgrades through its affiliated R³ Construction Services and maintain competitive rent growth. By staying within a market characterized by high entry barriers and a long operational history, Advanced aligns its capital deployment with a risk‑adjusted return profile that benefits from predictable demand and limited new supply.

Looking ahead, Los Angeles is set to host the 2028 Summer Olympics and the 2026 FIFA World Cup, while entertainment production rebounds to pre‑pandemic levels. These events are expected to boost short‑term visitor demand and long‑term population growth, driving up rental rates across the region. Advanced’s expanded footprint—now approaching 13,000 units—positions it to capture this upside, while its ongoing acquisition pipeline signals confidence in Southern California’s resilient rental market.

Deal Summary

Los Angeles‑based Advanced Real Estate purchased Kilroy Realty’s two Hollywood multifamily towers – the 200‑unit Columbia Square Living (renamed Sky Hollywood) and the 193‑unit Jardine – for $202 million. The acquisition was financed with $141.4 million in Freddie Mac loans and expands Advanced’s Southern California portfolio to nearly 13,000 units.