Southern California apartment investors have not seen a pandemic discount. Investor Advanced Real Estate has been an active buyer in the market this year, and while some sellers have made adjustments for declines in rent collections, low interest rates have kept prices stable.

"Throughout the pandemic, there remained consistent competition and barely a change in pricing," Paul Julian, principal at Advanced Real Estate Services, tells GlobeSt.com. "You received a small discount for COVID collection losses but nothing significant like we saw in past recessions. The combination of strong rent collections in the suburban markets, and record low financing rates, kept capital chasing So Cal apartments."

The firm closed 2020 with the acquisition of two-property apartment portfolio for $72 million. The two properties include the Edward, a 128-unit property, and the Lincoln on Grand, a 117-unit property. "This opportunity was attractive because of the location of the properties in dense, in-fill, Orange County markets, so close to many of our other properties," says Julian. "Very few OC properties over 100 units trade each year. We were happy to have been able to purchase these 2 as well as another in Santa Ana in November. Also, both properties were built in the early 1970's and in original condition so they should greatly benefit from our renovation program."