  HE 0435-5304 from Hamburg European Southern Observatory survey is a quasar
that appears in the literature with two conflicting redshift values: $\sim 1.2$
and $\sim 0.4$. It was used in the studies of the intergalactic medium through
fitting of the narrow absorption lines in its ultraviolet (UV) spectrum. This
source is also known historically as a luminous infrared galaxy. We present
optical spectra of HE 0435-5304, aiming to precisely measure its redshift and
to study its physical properties. In particular, properties of its active
nucleus, which is studied in the context of the source being identified here as
an ultra-luminous infrared galaxy, allow us to place this quasar in the context
of the general population. Fitting the spectra, we focused on modeling H$\beta$
and [O III] lines. Based on these, we derived the virial black hole mass,
bolometric luminosity, and Eddington ratio of the active galactic nucleus
(AGN). Additionally, we performed broad band photometry fitting which allows us
to quantify host galaxy parameters. The improved redshift value of HE 0435-5304
is estimated to $0.42788 \pm 0.00027$ based on the [O II] line, which is mostly
consistent with the narrowest components of the other emission lines. The
source was found to be a relatively massive and luminous AGN whose host galaxy
is actively forming stars. Although its stellar population seems to be heavily
obscured, we did not find evidence for significant obscuration of the nucleus.
We conclude that the AGN HE 0435-5304 is a rather prominent iron emitter from
the extreme type-A population very close to the narrow-line Seyfert 1 group.
The fact that the width of the H$\beta$ line appears to be systematically
growing in its broadest component with time may suggest that this AGN is
changing its broad line region. Due to the influence of atmospheric effects,
this finding is uncertain.
