The Mogharebi Group (TMG) has brokered the $7.25 million sale of a multifamily community in the Orange County community of Costa Mesa, CA. The buyer of the fully occupied property is an Orange County-based private investor.
Built in 1954 and 1986, the property is located at 221½ - 233 Avocado St. on a 1.14-acre site with easy access to the Costa Mesa Freeway. Situated on two parcels, the asset features a mix of two-bedroom townhomes, two-bedroom single-story detached apartment homes, one-bedroom, and studio units with select units including garages, patios and washer/dryer hookups. The low-density property holds the potential for ADU expansion.
“Despite the unfavorable debt market, we were able to obtain an outstanding price for this generational asset, one of the higher sales in the market for two-bedroom units,” said TMG’s Brett Bayless, who teamed with fellow Senior Vice President Ben Ketel to represent the seller.
Indicative of the healthy investor appetite for multifamily assets in the area, the 221½ - 233 Avocado St. sales price of more than $483,333 per conforming unit represented a 25% percent increase over the 2021 per unit median price of $386,236. According to PwC and Urban Land Institute’s “Emerging Trends in Real Estate 2022,” Orange County ranked fourth nationally in multifamily investment favorability.
In a market that long term has faced housing shortages, only 224 multifamily units are planned in Costa Mesa over the next five years, falling well short of the expected formation of 810 new households over that same period, according to TMG research.
221½ - 233 Avocado St. offers easy access to shopping and entertainment, including nearby South Coast Plaza, the largest mall in Southern California. The property is only minutes away from Newport Beach and John Wayne Airport. Within close proximity are three major educational institutions – Orange Coast College, Vanguard University and the University of California-Irvine – that have a combined enrollment exceeding 60,000 students.
The Mogharebi Group is one of the largest multifamily brokerage firms in the United States by volume. With offices throughout California, Seattle and Salt Lake City, The Mogharebi Group offers private investors and investment funds deep local market knowledge, an extensive global network of top real estate investors, state-of-the-art technology and direct access to capital with over $800 million in regularly revolving inventory. For more information visit: Mogharebi.com
THE MOGHAREBI GROUP ARRANGES MORE THAN $18.35 MILLION SALE OF 66-UNIT FINAL PHASE OF MULTIFAMILY COMMUNITY IN PUGET SOUND AREA
The Mogharebi Group (TMG) has arranged the $18.365 million sale of the 66-unit Samish Station 3, the third and final phase of Samish Station, a 119-unit multifamily community in the Puget Sound city of Bellingham, WA. The buyer, a local family investment partnership, acquired the first two phases of the development earlier this year for $17.6 million.
“We achieved top pricing for Samish Station through our ability to source strong local connections and relationships,” said Mogharebi Group’s Ryan Kidwell, who teamed with fellow Senior Vice President Robert Parmar in representing the Bellingham-based developer-seller. “That came despite the substantial complexities involved with this property and the overall challenging capital markets environment. We came to an agreement early on in the process but had to creatively structure things given that the final phase wasn’t completed at the time. We were able to successfully steward the deal to completion.”
Samish Station offers a range of one- to four-bedroom units in three five-story apartment buildings on an 0.90-acre site at 109 N. Samish Way. Community amenities include a resident clubhouse with kitchen, a fitness center, a patio and grill area, study and lounge spaces, and game rooms.
“The supply and demand dynamics are very favorable for Samish Station, and it’s evident in the tight market vacancy of 1.5% and 5% year-over-year rent growth with only 3.5% of existing inventory under construction,” added Parmar. “In addition, the property benefits from its proximity to Western Washington University and the need for quality and affordable student housing.”
Western Washington University, which has an enrollment of more than 15,000 students, is only three minutes away from Samish Station. Community residents also enjoy very easy access to Interstate 5 and downtown Bellingham, which offers a wealth of restaurants and breweries, as well as a thriving arts scene. In addition to Bellingham Bay, other recreational destinations close to Samish Station include the 180-acre Sehome Hill Arboretum and the 240-acre Whatcom Falls Park.
TMG arranged the sale of Samish Station 1 and Samish Station 2 in the second quarter for a total of $17.635 million. The $332,735 per unit price in that transaction was the highest in Whatcom County history.
The Mogharebi Group (TMG) has brokered the sale of a 44-unit garden-style multifamily community in Palm Springs, CA for $11.25 million. The buyer of the fully occupied property is a California-based affordable housing investor.
Sunnyview Villa Apartments’ two- and three-bedroom units are housed in seven two-story walk-up residential buildings on a 3.86 acre-site at 2900 N. Indian Canyon Dr. Built in 1980. The well-maintained affordable housing community is less than three miles from the shopping, dining, and entertainment opportunities in Downtown Palm Springs, as well as medical services at nearby Desert Regional Medical Center.
“Due to rapid increases in housing costs, demand for affordable alternatives like Sunnyview Villa has never been higher,” said Mogharebi Group Executive Vice President Otto Ozen, who represented the California and Utah-based private investor sellers. “Those market forces combined with current economic trends supporting more rental demand put this well-located community, which has a waiting list and strong in-place cash flow, in a bigger investment spotlight. As a result, we were able to close at full asking.”
California accounts for more than 25% of the nation’s deficit of 3.8 million housing units, according to a mid-year national housing report. The two-county Inland Empire, where Palm Springs is located, matched Phoenix for the largest gain in new households in 2020, with Riverside and San Bernardino counties experiencing a 50 percent increase, according to the Wall Street Journal.
The Mogharebi Group is one of the largest multifamily brokerage firms in the United States by volume. With offices throughout the western United States, The Mogharebi Group offers private investors and investment funds deep local market knowledge, an extensive global network of top real estate investors, state-of-the-art technology, and direct access to capital with over $800 million in regularly revolving inventory. For more information visit www.Mogharebi.com.
The Mogharebi Group (TMG) has arranged the $9.25 million sale of Plaza Grande, a 92-unit multifamily community in Salinas, CA. TMG represented the Monterey-based developer-owner of the fully occupied affordable housing community in its sale to a Los Angeles County-based private investor.
Built in 2003, Plaza Grande offers one-bedroom units ranging in size from 260 to 590 square feet. Renovations, including new flooring, cabinetry and vanities, have been made on a rolling basis. Located at 50 East Market St. in downtown Salinas, the three-story apartment community includes a gym, courtyard and picnic area with grills.
“Despite rising interest rates hampering the real estate capital markets, we were able to attract multiple interested buyers to Plaza Grande, ultimately topping $100,000 per unit in this sale,” said TMG Executive Vice President Otto Ozen, who along with Senior Investment Advisor Nazli Santana brokered the transaction. “The universal need for affordable housing, aided by Baby Boomer demographics and an even more robust overall renter economy, has created so much demand that the California Housing Partnership projects that 120,000 more affordable units will be needed each year by 2030.”
Even with the overall favorable multifamily supply and demand dynamics, Mogharebi had to overcome several obstacles in achieving a successful sale, including a limited Low-Income Housing Tax Credit (LIHTC) investor pool and the non-traditional unit sizes at Plaza Grande, according to Santana.
“We were able to demonstrate that as a LIHTC community, Plaza Grande offered extra investment appeal, such as a more stable tenant base and consistent, reliable government-backed rent payments,” said Santana. “Also, landlords will likely benefit from reduced competition as more affordable housing properties participating in the 30-year LIHTC program become eligible for market-rate conversions or are removed from the rental market altogether. Finally, Plaza Grande is located in an Opportunity Zone, which offered considerable tax advantages to the buyer.”
The county seat and most populous city in Central California’s Monterey County, Salinas is only about 12 miles from the coast, an hour south of San Jose and an hour and 45 minutes south of San Francisco. Known as the “Salad Bowl of America”, Salinas and the surrounding rich farmland support a $2 billion agricultural industry that produces an abundance of fruit, vegetables and more. The city’s close proximity to Silicon Valley and a large number of agricultural employers have put it on the path to becoming the AgTech Capital of the nation.
The Mogharebi Group is one of the largest multifamily brokerage firms in the United States by volume. With offices throughout the western United States, The Mogharebi Group offers private investors and investment funds deep local market knowledge, an extensive global network of top real estate investors, state-of-the-art technology, and direct access to capital with over $800 million in regularly revolving inventory. For more information visit: http://www.Mogharebi.com.
“The Central Valley is adding significant economic momentum from the energy, healthcare, government and other sectors to its traditional agricultural base, but it’s not adding enough housing to keep up with the resulting in-migration of people chasing that opportunity while leaving behind the higher cost of living in coastal cities,” said Bonas. “As a result, the supply and demand dynamics from the strong regional economy and steady population growth have produced favorable multifamily investment conditions.”
Built in 2006-2007, Tyner Ranch Apartments feature spacious two- and three-bedroom floorplans ranging in size from 788 to 1,193 square feet. The single-family-residential-style apartment homes include fully equipped kitchens, attached garages and private backyards with patios that look out onto the Tyner Ranch’s spacious green belt and connect to picnic areas with grilling stations between the residential buildings.
“With asking rents at Tyner Ranch considerably below market, the buyer was attracted by the opportunity for revenue recapture over the next 12 months and almost immediately enhance yield by 10% on currently established market rents,” Bonas said. “That near-term gain comes amidst the bigger picture of sellers we’ve represented achieving up to 50 percent margins after only a couple of years of ownership. That speaks volumes about the investment market in the Central Valley.”
Since its founding in 2015, TMG, one of the leading multifamily brokers in the state of California, according to real estate research and advisory firm Green Street, has been involved in the sale of more than 6,500 units in the Central Valley with sales nearing $1 billion.
California’s Central Valley stretches approximately 450 miles from Bakersfield, the state’s ninth most populous city, north to Sacramento. The 70-city region has an inventory of 1,055 multifamily properties of 50 units or more totaling approximately 123,000 units, according to Yardi Matrix.
Bakersfield, the county seat of Kern County, is 110 miles north of Los Angeles and 274 miles south of San Francisco. The county is the most productive oil-producing county and the fourth-most productive agricultural county by value in the United States. According to the State of California Employment Development Department, industry employment in Kern County is projected to increase by 16.1% to 391,800 by 2024 with total non-farm employment projected to grow by more than 41,200 jobs during the period.
The Mogharebi Group is one of the largest multifamily brokerage firms in the United States by volume. With offices throughout Western United States, The Mogharebi Group offers private investors and investment funds deep local market knowledge, an extensive global network of top real estate investors, state-of-the-art technology and direct access to capital with and direct access to capital with over $800 million in regularly revolving inventory.
Crescent Point, a 62-unit apartment community in Olympia, WA has traded for $21.25 million ($342K per unit), according to Ryan Kidwell of The Mogharebi Group who represented the buyer in the off-market transaction.
Located at 5600 Dunham Drive, Crescent Point was built in 2020 by the seller, a local partnership. The three-story community features a mix of one-, two- and three-bedroom floorplans, each with nine-foot vaulted ceilings, granite countertops, den or study, carpeted and hardwood floors, walk-in-closets and in unit-washer and dryer.
Our buyer was attracted to the property for the quality of the build and its proximity to Yelm Highway, the area’s major east/west arterial, which provides a simple commute to the approximately 150,000 jobs in Thurston County. It is also within 30 minutes of Joint Base Lewis-McChord, one of the largest military bases in the United States. With a population of 209,000, it is the 4th largest military base in the world. The community is also within a five-mile drive from more than one million square feet of shopping space including major retailers Costco, Home Depot, Lowes, and Walmart.
"Crescent Point presented the buyer with an opportunity to replace a recently sold 56-unit apartment community in Vancouver, WA in a 1031 Exchange transaction,” said Kidwell. “We were able to identify Crescent Point as our client’s replacement property in less than a month. 1031 Exchanges can be very complex and come with very stringent timelines making it a difficult process to complete. The seller, with whom we’ve had a previous relationship, was very cooperative which contributed to the success of this seamless transaction.”
Crescent Point is the first investment in Thurston County for the buyer, a San Francisco-based multifamily investment company whose portfolio includes assets in Washington, Oregon and Idaho.
Crescent Point was 100 percent leased at closing.