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The Mogharebi Group (TMG) has advised a private seller in the sale of two Central California multifamily properties totaling 293 units for a total consideration of $61.75 million. The assets — The Grove in Bakersfield and Cottonwood Grove in Clovis — each generating multiple offers, were sold to separate California-based private investors.
The Grove is a 142-unit gated community built in 1994. Situated on an 11-acre site at 4801 Fruitvale Ave., the property features townhome-style units averaging over 1,100 square feet, each with private garages. Each unit offers residents a full-size washer and dryer, bay windows, and granite countertops. Common area amenities include two pools, a spa, fitness center, and sundeck with grilling stations. Approximately 20% of units are rent-restricted, offering ad valorem tax savings.
Cottonwood Grove is a 151-unit guard-gated community built in 1992. Located at 732 N. Clovis Avenue, the studio to three-bedroom units, each feature vaulted ceilings, full-size washer/dryers, and one-car garages are housed in 26, two-story residential buildings on a 9.5-acre site. Cottonwood Grove benefits from its location within the award-winning Clovis Unified School District. Roughly 20% of units are rent-restricted.
After holding the properties for more than three decades, the seller decided to leverage the full depreciation realized on both properties, and strategically redeploy the proceeds to diversify its portfolio. TMG tailored its marketing strategy to target 1031 exchange buyers, syndicators, institutional investors, and high-net-worth individuals, generating strong interest and resulting in multiple offers despite limited inventory in both markets.
The population in the Central Valley is projected to grow by approximately 5 million people by 2060, according to data from California’s Department of Finance. In contrast, over that same time period Los Angeles County is expected to lose 1.7 million people.
“Investors are increasingly attracted to the long-term fundamentals of the California Central Valley’s multifamily market, which has been driven in large part by substantial population growth due to migration from higher-cost coastal areas,” said TMG Executive Vice President Otto Ozen who led the advisory team that included Senior Vice Presidents Brian Nakamura, Mark Bonas and Nazli Santana. “Despite this influx, elevated interest rates and rising development costs have tempered new supply, contributing to stable operational performance and consistent rent growth for owners of existing housing stock.”
TMG has closed over 5,700 units in California’s Central Valley and Sacramento regions in the past three years, reinforcing its position as a leading multifamily brokerage firm in the state.
“These transactions reflect the strength of our collaborative platform and deep investor relationships,” added Ozen. “The continued growth of our market share clearly reflects the success of that approach.”
