$260,000 per door sets new high watermark for mulitfamily assets in California’s Central Valley city.
MODESTO, Calif. – June 14, 2023 – PRLog — The Mogharebi Group (TMG) has arranged the $25.2 million sale of Trails at 2112 Apartments, a turnkey 97-unit multifamily community in the Central Valley city of Modesto, CA. Executive Vice President Otto Ozen and Senior Vice President Brian Nakamura represented the seller, Berkeley-based Valiance Capital in the transaction.
Located at 2112 Floyd Ave., the property comprises a desirable mix of studio, one-bedroom, and two-bedroom units ranging in size from 550 to 950 square feet. After acquiring the 1985-built property through TMG three years ago, Valiance invested nearly $2.9 million in capital expenditures to transform the property into a market-defining luxury asset. All units were fully renovated with contemporary features such as in-unit washers and dryers, quartz countertops, stainless steel appliances, white cabinetry, and dual-pane windows. Common area improvements included resort-style pool upgrades, fitness center renovations, a new dog park and wash station, HVAC replacements, exterior enhancements, and more.
“Despite rising interest rates, high inflation, and other economic uncertainties, we generated significant interest in the property and procured nine qualified offers,” said Ozen. “We sourced a strong exchange buyer and ultimately closed at just under $260,000 per door, setting a high price for a deal of this size and underscoring our position in the market.” said Ozen.
The transaction set a new high watermark for apartment assets of this size and vintage in Modesto, according to CoStar data. As a leader in multifamily investment advisory since its founding in 2015, TMG has closed on more than 2,600 apartment units in Modesto specifically and over 10,000 units in the Central Valley region, with a total value exceeding $1 billion.
“Through our firm’s presence in Modesto—where we maintain the largest market share—and ability to tap into 1031 Exchange buyers, we were able to drive considerable value for the property and help our client achieve their business plan with a nonrefundable deposit at the open of escrow,” added Nakamura.
The buyer, a private family office that is an active owner on the West Coast, recognized the opportunity to achieve economies of scale and leveraged the acquisition by assuming an attractive fixed-rate agency loan with five years of interest only and a 10-year term.
About The Mogharebi Group
The Mogharebi Group (http://www.Mogharebi.com) is a real estate investment and advisory firm specializing in the multifamily property sector throughout the Western United States. Backed by unparalleled local market knowledge, an extensive global network of top real estate investors, state-of-the-
DB&R Marketing Communications, Inc.