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“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.
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News From The Mogharebi Group
For Immediate Release
INVESTOR DEMAND FOR MULTIFAMILY ASSETS CONTINUES TO GROW IN THE ROBUST MARKET OF SOUTHERN CALIFORNIA’S INLAND EMPIRE
The Mogharebi Group brokers $23.935 million sale of a 55-unit townhome community in Ontario, CA
The Mogharebi Group (TMG) representing the seller has arranged the $23.935 million sale of Charlmont Village Townhomes, a 55-unit property in the Inland Empire city of Ontario, CA. The buyer of the nearly 100 percent occupied property is a private investment group from Beverly Hills, CA.
Built in 1984, Charlmont Village Townhomes offers two-, three-, and four-bedroom units that include attached two-car garages and large fenced yards. Spanning 12 buildings, the residences feature spacious, townhome-style floor plans with units averaging 1,102 square feet. Community amenities at the 3.57-acre property include a swimming pool, spa and lush landscaping.
Located at 1625 E. G St., Charlmont Village Townhomes is approximately 40 miles east of downtown Los Angeles, and offers easy access to the 10 Freeway and Ontario International Airport. The community is situated close to employment hubs and Ontario Mills, California’s largest outlet / value retail shopping destination.
The Charlmont Village Townhomes sales price of more than $436,000 per unit represented a 65% increase over last year’s per unit median price of $283,329, according to TMG research, and is indicative of the increasing investor appetite for multifamily assets in The Inland Empire. In fact, the Inland Empire earned the top spot nationally in multifamily ‘buy’ recommendations, according to 2022 Emerging Trends in Real Estate published by PwC and the Urban Land Institute.
“The median sales price for a single-family home in Ontario has risen 20 percent in one year to around $627,000, meaning more housing demand switching over to the rental market, which puts quality properties like Charlmont Village Townhomes even more in the spotlight,” said TMG Executive Vice President Otto Ozen. “Charlmont received a lot of investor interest because of those market dynamics, as well as its great location, value-add potential, and condo mapped exit strategy. Through our proprietary 1031 exchange platform that includes a robust network of private, high net-worth and exchange buyers, we were able to drive the value and successfully go non-contingent on day-one.”
No Inland Empire city had a higher ‘housing needs assessment’ allocation than Ontario, which trailed only three Southern California cities – Los Angeles, Long Beach and Irvine – in the measure of how many residential units are needed to adequately address the housing imbalance, according to Ozen.
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.
The Mogharebi Group (TMG) representing the seller, FPA Multifamily, has arranged the $30.65 million sale of ReNew, a 128-unit development in the Central Valley community of Visalia, CA. The buyer of the property is a private investment group from nearby Santa Barbara.
Visalia is one of 70 cities that make up California’s Central Valley, which stretches approximately 450 miles from Sacramento to Bakersfield. The region has an inventory of 1,055 multifamily properties of 50 units or more totaling approximately 123,000 units, according to Yardi Matrix.
“The Central Valley has long been thought of as strictly an agricultural area, but that is only one part of its economic story,” said TMG Executive Vice President Otto Ozen. “Government and healthcare are large and growing economic drivers, which combined with the region’s lower cost of living has resulted in an in-migration of people from higher-cost coastal cities. Yet new construction has not kept up with demand. The strong regional economy and steady population growth combined with the high barriers to entry, has not been lost on investors,” Ozen added.
In the last two years, 445 multifamily properties in the Central Valley have traded hands, 10 percent of those transactions brokered by TMG. Over that span, the average sales price per unit increased 21% from $111,275 to $135,444. The greatest increases could be found in 4- and 5-star properties which increased 28 percent from $228,465 to $292,412.
Built in 2008, ReNew Visalia is a two-story, 128-unit apartment community located at 3315 Lovers Lane. The property comprises 16 residential buildings totaling 119,608 rentable square feet. The complex is situated on a 6.76-acre site, for a comfortable density of 18.9 units per acre. The apartment homes feature spacious one-, two-, and three-bedroom floor plans with an average size of 934 square feet, respectively. The property boasts a swimming pool, recreation room with wet-bar, laundry facilities, clubhouse, spa, and reserved parking.
“Not only did we help the seller find ReNew a few years ago, but after 24 months, we were able to sell it for 50% higher price, which is indicative of growing investor interest for properties in the Central Valley,” Ozen concluded.
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 exceeding $800 million.
News From The Mogharebi Group
The Mogharebi Group (TMG) representing the seller has arranged the $12.2 million sale of The Wilson Townhomes, a 24-unit development in the Orange County community of Costa Mesa, CA. The buyer of the fully occupied property is a private investment group from nearby Newport Coast.
Built in 1961, The Wilson Townhomes is located at 1032 W Wilson St. on a low-density two-acre site bordering both Newport Beach and Huntington Beach. Each of the two-bedroom apartment homes averaging 1,028 square feet are housed in six two-story residential buildings. Community amenities include a swimming pool, laundry rooms, leasing office, storage area, lush landscaping and garage parking.
The Wilson Townhomes sales price of more than $508,000 per unit represented a 31 percent increase over last year’s per unit median price of $386,236, and is indicative of the increasing investor appetite for multifamily assets in the area. According to PwC and Urban Land Institute’s “Emerging Trends in Real Estate 2022,” Orange County ranked fourth nationally in multifamily investment favorability.
“Many households are being priced out of the for-sale housing market in Orange County with median home prices exceeding $1.15 million and yet the supply of multifamily housing simply has not caught up with demand,” said TMG Senior Vice President Brett Bayless. “Rental demand in Costa Mesa has been strong for decades and considering the current high occupancy of 98 percent, robust forecasted household formation and lack of new supply, it’s very likely that demand will remain extremely strong in the foreseeable future. As a result we received multiple offers from a variety of investors.”
According to TMG research, 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.
Multifamily brokerage firm The Mogharebi Group (“TMG”), representing a private investor based in Salt Lake City, UT has successfully brokered the sale of a 108-unit apartment community in Palm Springs, CA for $19.7 million.
Built in 1964, Tahquitz Court is an affordable apartment community located on E Tahquitz Canyon Way. The two--story garden-style community situated on a 5.40-acre lot features a mix of one-, two- and three-bedroom units. Community amenities include well-manicured grounds, two pools, a spa, and an on-site laundry facility. Tahquitz Court Apartments is less than two miles from Downtown Palm Springs, a famous destination known for its plethora of dining and nightlife options, high-end shopping, and unique architecture. It is a short walk to significant jobs and area amenities, including Palm Springs International Airport.
“Tahquitz Court is an affordable housing community that presented fantastic opportunity for investors through preservation and renewal of the affordability agreement or through repositioning as a market rate.” says Otto Ozen, Executive Vice President of TMG. “As a result, the property generated multiple offers from a diverse pool of buyers and ultimately closed with a Los Angeles-based private investment group.
Palm Springs is severely supply constrained with multifamily vacancies at 2.1% according to TMG research. Despite an estimated population growth of 6% over the next five years, only five units have been built in the past 12 months.
“Home prices in Palm Springs have increased by 50% in the past year alone, catapulting the median home price to $623,000,” added Ozen. “As a result, home ownership is out of the reach of many of the 50,000 permanent residents there creating tremendous demand for quality well located multifamily assets.”
