The Mogharebi Group Retained as Exclusive Agent for 100 Unit UC Santa Barbara Portfolio

The Mogharebi Group Retained as Exclusive Agent for 500+ Unit Prime Multi-Family Portfolio in Southern California

A 238-unit apartment community in northwest Fresno has sold for more than $20.4 million.

That comes out to $85,966 per unit — or just under $89 a square foot — making The Enclave apartments sale the highest per-unit price paid so far this year for any multi-family building in the Valley, according to Fresno’s Mogharebi Group, which brokered the sale to a private investment group out of the San Diego area.

The brokers didn’t identify the buyers.

“The combination of record job and population growth against historically-low new apartment starts creates massive pricing power for existing communities like The Enclave,” Robin C. Kane, senior vice president of TMG, said in a written statement. “We aggressively marketed The Enclave to our list of high net worth private as well as exchange buyers. This strategy generated multiple offers and closed at near full list price.”

The apartments, at 3274 W. Ashlan Ave., were built in 1978 and sit on 18.2 acres. The recently remodeled two-bedroom units range in size from 965 to 988 square feet. The complex includes two pools and spas, a business center, a fitness center, a basketball court, a tennis court, a playground, two laundry facilities and a dog park.

ORANGE COUNTY, CA—The Mogharebi Group has sold two two-story multifamily assets built before the 1990s for high per-square-foot prices after garnering multiple offers. The properties comprise the Heights, a 30-unit complex at 704-706 West First Ave. in La Habra, and the Minnie Street Apartments, a 20-unit complex at 1426 and 1430 South Minnie St. in Santa Ana.

Mike Marcu, SVP of TMG, tells GlobeSt.com that the older buildings that attract the most investor interest are often in gentrifying neighborhoods. “The rental upside in these locations, created by shifts in the tenant base, is attractive to investors looking to add value by repositioning properties.” Marcu adds that in areas that are not yet seeing gentrification, older buildings offer the best buying metrics, which can be particularly attractive to investors looking for increased yield.

In August, the firm’s founder and president Alex Mogharebi told GlobeSt.com that Orange County’s urban core has been undergoing a renaissance. “Anaheim and Santa Ana have historically been considered the heart of Orange County. However, over the years, they have been surpassed by newer suburban communities with modern amenities.” He said that recently, a combination of both private and public investments has increased residential demand from young professionals, which in turn has increased investment demand.

Built in 1987, the Heights sold for $7.6 million, which equates to $251,833 per unit or $311 per square foot. The Minnie Street Apartments, built in 1961, sold for $3.7 million, which equates to $182,600 per unit or $256 per square foot. The buyers were private investment groups based in the South Bay and the San Gabriel Valley, respectively. The Heights, which was recently upgraded, was sold by a private-equity real estate firm located in the San Gabriel Valley, while Minnie Street Apartments was sold by a private investor located in Orange County.

“Due to its age, unit mix, and high parking ratio, the Heights was a highly sought-after asset,” said Marcu in a prepared statement. He added that the offers for this property were “far beyond seller expectations.” Also, Marcu pointed out that Minnie Street Apartments is an older core Orange County asset for which the owner was looking to reposition equity and increase returns.

Marcu represented both sides of the transaction for the Heights and the seller for Minnie Street Apartments.

BAKERSFIELD, CA—Autumn Glen and Serena Vista, comprising a total of 250 units, were the last two Bakersfield properties in the Bascom Group portfolio. Both assets sold this summer for a combined price of about $25 million, representing 96% of the asking price and below replacement cost.

Mark Bonas, who recently joined The Mogharebi Group as senior vice president, represented the Bascom Group in the disposition of all six of the total Bakersfield assets. After the sale was finalized, Otto Ozen, executive vice president at The Mogharebi Group, offered added insight into the Central Valley market in this exclusive.

GlobeSt.com: What do investors look for in a Central Valley investment?

Ozen: Within the Central Valley, investors are looking for yields and leverage that are unavailable in core California markets. They are looking to get maximum leverage, with agency loans that are near 75% to 80% loan-to-value ratio. With high leverage, double digit cash-on-cash returns are common. Investors are attracted to properties with amenities that are uncommon elsewhere like washer/dryers in the units and large average unit sizes with townhome floor plans. They prefer premier locations within the Valley that act as metropolitan centers or are near the Bay Area or Southern California. These markets include Modesto, Fresno, Bakersfield and Visalia.

GlobeSt.com: Which areas of the Central Valley are most attractive for near-term investment?

Ozen: Visalia, Tulare and Hanford are particularly attractive investment markets. Each city features historical downtown areas and has a desirable retail mix that continues to improve. A major driver of interest in the area is the Kings–Tulare regional station, which will serve as a regional hub for the California high-speed rail system, and will be located at a site that is in between Hanford and Visalia. The new rail system is expected to be a boon for the Central Valley because it will reduce the commute into the Bay Area to a realistic level, thus increasing demand for housing from higher income residents.

Hanford has been receiving additional interest as Faraday Future has leased the old Pirelli factory to manufacture electric cars there. The new factory is being renovated, with significant work planned in 2018. When complete, it is expected to employ up to 1,300 workers and build up to 10,000 cars per year.

Modesto, Merced and Stockton are also attractive markets due to the proximity to the Bay Area, which is pushing commuters further out due to pricing pressures. Bakersfield is attracting investors as renters are being priced out of Los Angeles.

GlobeSt.com: What recent developments have you seen taking place in the Central Valley that might affect real estate markets?

Ozen: The Central Valley is experiencing a surge of interest from buyers looking for yields that are better than those that are available in the core markets in the Bay Area and Southern California. Starting in Q2 2017, we observed a significant spike in monthly sales volume that dwarfs the previous record for the same period that was set in 2015. We believe this increase is attributable to buyer and seller expectations that appear to be more aligned than they are in core markets. Investors appear to have discovered more compelling investment fundamentals in the Central Valley than are currently available in the Bay Area and Southern California.

MORENO VALLEY, CA—The Mogharebi Group, (“TMG”) has completed the sale of Baywood Villas, a 56-unit community, that is located on Bay Avenue. The property sold with multiple offers for a sales price of $10,700,000 that equates to $191,071 per unit or $196 per square foot. The buyer was a private investment group based in Northern California.

“At a per unit price of $191,071, this transaction represents a record price for apartment communities in the Moreno Valley area. The prior record was set at $202,500 per door for a new class-A property, that was built in 2007, and sold near the market peak in 2007. The record setting price is attributable to several factors, including a lack of inventory available, our proprietary exchange platform, the high quality of the asset, and strong rental growth in the submarket” says Otto Ozen, Executive Vice President of TMG. “We aggressively marketed Baywood Villas to our list of high net worth private as well as exchange buyers. This strategy generated multiple offers and closed near full price.”

Alex Mogharebi and Otto Ozen of TMG represented the seller, a real estate development firm located in the Inland Empire.

Built on a 3.57-acre site in 2007, the property is located at 22945 Bay Ave in Moreno Valley. Baywood Villas features lavishly outfitted units. Amenities include refrigerator, dishwasher, gas range/oven, granite counter top, premium kitchen cabinet, full-size washers/dryer, built-in microwaves, nine-foot ceiling, mirrored closet, central air-conditioning/heating, built-in wall desks, tiled kitchen/bathroom flooring, double paned windows, and patios/balconies. The community features exquisite common area amenities including two resort-style swimming pools, a hot tub, a barbecue area, a clubhouse, a business center, a gym, an on-site leasing office, and a gated access.

With unrivaled local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

COSTA MESA, CA—Anaheim and Santa Ana have historically been considered the heart of Orange County, but have been surpassed by newer suburban communities with modern amenities—but that’s all changing now, the Mogharebi Group’s founder and president Alex Mogharebi tells GlobeSt.com. The firm reports that there has been roughly $6 billion in redevelopment in Anaheim recently, and the Santa Ana is urbanizing so much that it is planning to add a streetcar system to its infrastructure. We spoke with Mogharebi about the renaissance of Orange County’s metropolitan core and where he sees it heading.

GlobeSt.com: How would you describe what’s been happening in the metropolitan core of Orange County
from a real estate perspective?

Mogharebi: Anaheim and Santa Ana have historically been considered the heart of Orange County. However, over the years, they have been surpassed by newer suburban communities with modern amenities. Recently, a combination of both private and public investments has increased residential demand from young professionals, which in turn has increased investment demand. Orange County’s urban core is undergoing a renaissance. There are several significant developments that are under construction or planned within Anaheim: Disneyland’s $1.5-billion addition of Star Wars Land, a $200-million expansion at the Anaheim Convention Center, approximately 1,000 luxury-hotel rooms planned near Disneyland for a total cost of about $2 billion, and a $2.4-billion pedestrian-oriented development that is planned for the Platinum Triangle. Additionally, Santa Ana has benefitted from an improved retail mix in its Downtown, which is an increasingly desirable area due to its comparably affordable housing and great proximity to jobs.

Within the Mogharebi Group platform, we have observed significant interest in central Orange County. We have recently marketed and sold the 116-unit ECHO in Anaheim and the 84-unit Tustin View in Santa Ana. Each of these properties received almost a dozen offers and sold for nearly 97% of list price. The winning bidder for each property was an exchange buyer who was willing to step up in price to purchase a desirable property at these burgeoning locations. TMG is currently marketing the 84-unit BLOC Apartments in Anaheim near Disneyland and the 55-unit Vista Royale and 20-unit Minnie Street apartments that are both located near Downtown Santa Ana.

GlobeSt.com: How do you see this submarket evolving over the next few years?

Mogharebi: Orange County has historically been a hub for businesses operating in the finance, insurance, and real estate (also known as FIRE) sectors. In the most recent cycle, growth in FIRE-heavy markets has lagged in comparison to markets with a high concentration of technology and creative jobs. Orange County has been no exception. However, with significantly higher office rent in the tech market of Silicon Valley, we anticipate technology and creative firms will increasingly expand into Orange County. According to NAR, residential real estate in OC is also more affordable, with a median home price of $750,000 compared to $1,070,000 in San Jose. Over the next few years, we expect that Orange County’s employment base will diversify with more tech
and creative jobs. As this trend progresses, we anticipate the affordability gap between Orange County and the Bay Area to decline.

GlobeSt.com: What infrastructure changes are occurring here that could influence real estate?

Mogharebi: Santa Ana has plans for the OC Streetcar that will service the city’s historic Downtown by 2020. This investment will enhance mobility and increase pedestrian-oriented development. It will help shape Downtown Santa Ana into a premier destination for entertainment, shopping, and dining. California’s high-speed rail is scheduled to start passenger service from Anaheim to Los Angeles in 2029. It is expected that Orange County will gain almost 23,000 jobs by 2030 because of the high-speed rail.

GlobeSt.com: What else should our readers know about this submarket?

Mogharebi: Orange County is a land- and supply-constrained market with properties that are currently undervalued when compared to the tech-heavy markets nationally. Due to the combination of Orange County’s desirable climate, well-educated workforce and less traffic congestion, it is a relative bargain with superior upside in comparison to the Bay Area or even nearby Los Angeles.

LANCASTER, CA—The Mogharebi Group, (“TMG”) has completed the sale of the Racquet Club Apartments, a 200-unit community, that is located on 15^th Street West. The property sold with multiple offers for a sales price of $21,000,000 that equates to $105,000 per unit or $116 per square foot. The buyer was a private investment group based in Los Angeles, CA.

“At a per unit price of $105,000, this transaction represents a record price for communities that are over 30 units in the Lancaster / Palmdale area. The prior record was set at $104,000 per door during the last market cycle in 2004. This record setting price is attributable to several factors, including a lack of inventory available for exchange buyers in the market, The Mogharebi Group’s proprietary exchange buyer platform, the property’s stellar location being adjacent to the Antelope Valley Hospital, and strong rental growth in the submarket” says Alex Mogharebi, President of TMG. “We aggressively marketed Racquet Club to our list of high net worth private clients who are currently looking for exchange up-legs. This strategy generated multiple offers and closed near full price.”

Alex Mogharebi and Otto Ozen of TMG represented the seller, a private equity real estate firm located in Santa Monica and the Los Angeles based private buyer.

Built on a 9.65-acre site in 1973, the property is located at 44045 North 15^th Street West in Lancaster. The community features exquisite common area amenities including two large resort-style swimming pools and hot tubs, two tennis courts, 24-hour state-of-the-art fitness center, business center with computers and printers, secured access, and reserved covered parking.

With unrivaled local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

Central Valley, CA—The Mogharebi Group, (“TMG”) has completed the sale of a portfolio comprising 450-units in 3-complexes that are located throughout the Central Valley. Kings Pointe, a 104-unit community, is located on Harold Street in Kingsburg. Oak Valley, a 109-unit property, is located on East Cross Avenue in Tulare. Oak View, a 237-unit complex, is located on West Caldwell Avenue in Visalia. The portfolio sold with multiple offers at above list price for a total sales price of $46.8 million. Alex Mogharebi and Otto Ozen of TMG represented the seller, a San Diego based private investor. The buyer was a Central Valley based private investment group.

“The closing of this portfolio deal solidifies The Mogharebi Group’s place as the preeminent broker for properties over $5 million in the Central Valley,” says Alex Mogharebi, President of TMG. “The 450-unit portfolio attracted significant investor interest because the 3-properties provided the scale necessary for even an outside investor to run highly profitable operations in this tertiary, yet stable market that continues to grow. Additionally, the properties have been owned long-term through solid operations, and presented significant upside with improved management.” Mr. Mogharebi continued, “Increasingly, more investors are attracted to the Central Valley for higher yield and leverage that is not present in the coastal markets of Northern and Southern California. The Mogharebi Group’s experience in this market and access to investors below the radar make us the ideal platform for investors in this thriving region.”

Built on a 4.44-acre site in 1987, Kings Pointe is located at 901 Harold Street in Kingsburg. While Oak Valley is situated on a 7.06-acre site at 2001 East Cross Avenue in Tulare, Oak View is located at 4700 West Caldwell Avenue on a 16.46-acre site in Visalia. All three properties are near to significant employment. The properties feature attractive community amenities, including sparkling swimming pool and hot tub, 24-hour state-of-the-art fitness center, and reserved covered parking.

With unrivaled local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

MODESTO, CA—The Mogharebi Group, (“TMG”) has completed the sale of The Commons Apartment Homes, a 100-unit community on Standiford Avenue, and Summerview Apartment Homes, a 136-unit community on Prescott Road, in Modesto, CA. The two properties sold together for $32,568,000 with multiple offers. Alex Mogharebi and Otto Ozen of TMG represented the seller, a Massachusetts based investor. The buyer was a private investor based in the Southern California

“This sale represents a near record setting price for this cycle in Modesto,” says Alex Mogharebi, President of TMG. Mr. Mogharebi concluded, “The strong rental growth and relative value attracted significant investor interest in these two assets. I anticipate continued growth in this submarket as price and yield play catch up with the Bay Area, which is priced well above its pre-recession level. The buyer did very well to acquire the significant high-quality foothold that these properties represent in this promising market.”

Built on a 4.33-acre site in 1989, The Commons is located at 1600 Standiford Avenue, while Summerview is situated on a 5.03-acre site on Coffee Road. They both have significant exposure on their fronting roads, with over 35,000 and 20,000 cars per day, respectively.

The properties feature attractive community amenities, including a sparkling swimming pool and hot tub, 24-hour state-of-the-art fitness center, and reserved covered parking. Both complexes are located within two miles from Highway-99, shopping / jobs at Vintage Faire Mall, Kaiser Permanente Medical Center, and Central Valley Plaza.

With unrivaled local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

The Mogharebi Group, (“TMG”) has completed the sale of Tustin View Apartments, an 84-unit community that is located on Ponderosa Street in Santa Ana, CA. The property sold April 12 for $22,375,000 with multiple offers. Alex Mogharebi of TMG represented the seller, a Los Angeles-based private investor. The buyer was a private investor in exchange based in Northern California.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170426005345/en/

“Due to the location and quality of this property, coupled with the proven value-add program, the potential buyer pool was significant in size,” says Alex Mogharebi, President of TMG. “To maximize the value of this community, we aggressively marketed it to our list of high net worth private clients who are currently looking for exchange up-legs. This strategy generated multiple offers and closed near the list price.” Mr. Mogharebi concluded, “There was tremendous investor interest in this property. Thus, the owner cherry picked the winning bidder based on a combination of price, terms and closing certainty.”

Built on a 2.83-acre site in 1968, the property is located at 2010 Ponderosa Street in Santa Ana. The neighborhood is north of Interstate-5 in Santa Ana in close proximity to Tustin. It is served by Tustin School District. Tustin View is near to numerous neighborhood retailers including Shabu Shabu Bar, Chipotle, Claim Jumper, Tutto Fresco, and Zov’s Bistro. It is a short drive to Disneyland, CHOC, Westfield Main Place Mall, Orange County Civic Center, and the Outlets at Orange.

Tustin View Apartments features attractive community amenities including a large sparkling outdoor pool with a resort-like cabana, barbecue areas, two 24-hour laundry centers, state-of-the-art fitness center, reserved covered parking, and controlled access.

With unrivaled local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

The Mogharebi Group (TMG) completed the sale of Country Club Apartments, a 79-unit community located at 160 East Parkdale Ave. in San Bernardino, CA. The property, built on a 5.44-acre site in 1986, sold for $9.6 million.

TMG’s Alex Mogharebi says, “The property is in the desirable CSU submarket of San Bernardino that has been seeing some solid rent growth the last couple years. Country Club was particularly appealing to the buyer because of its large floor plans with washer/dryer hookups making it conducive for a value-add strategy.”

Mogharebi and Otto Ozen represented the seller, an unnamed Orange County based private equity group, as well as the the buyer, an undisclosed Los Angeles based syndicator.

INDIO, CA — Indio is one of the most populous cities in the Coachella Valley, and there is an increasing amount of activity in the area because of growing festival activity, the Mogharebi Group’s president Alex Mogharebi tells GlobeSt.com. The firm recently completed the sale of Mountain View Cottages, a 311unit apartment community located on Arabia St. here, on behalf of the buyer, a Simi Valleybased private investor.
The property sold with multiple offers for $15.5 million. We spoke with Mogharebi about the Indio multifamily market and what tenants and investors in this market seek.

GlobeSt.com: How would you characterize the Indio multifamily market?

Mogharebi: Indio is also the most populous city in Coachella Valley. It has a population of more than 85,000 people that is expected to rise to more than 140,000 by 2030, reflecting an annual growth rate of almost 6% per
year that is significantly above the national average at 1%. Multifamily properties represent a relatively small market share at approximately 25% of residential units. The Indio submarket comprises mostly workforce
housing, senior housing, affordable housing and shortterm rentals (for snowbirds). There is increasing amount of activity in the area because of growing festival activity. There is also a secular growth trend in the area fueled by the aging Baby-Boomer population that finds Indio attractive due to its relative affordability and its warm weather.

GlobeSt.com: Who are the typical multifamily tenants there, and what are they seeking in an apartment?

Mogharebi: Workforce tenants comprise the largest portion of the market. They are employed mostly in the retail, education, construction and leisure sectors. These tenants like a functional design and a large unit size that can accommodate a family at a reasonable price. Unit amenities such as washer/dryer and multiple bathrooms and common-area amenities such as a swimming pool and fitness gym are in demand as well.
Seniors are typically retired and have their primary residence here, while short-term rental tenants or live within three hours of the area and have second homes here. They like discretionary finishes such as granite countertops, while a large unit size is less important.

GlobeSt.com: What does the investment market there look like?

Mogharebi: Recently, Indio has been a strong investment market due to increased demand from the growing number of festivals here that include the Coachella Music Festival, Stagecoach and Desert Trip (the newest addition). These events attract more than 12 million visitors annually, who generate more than $4 billion per year and employ more than 19,000 people here. Due to the aging Baby-Boomer population, there is also the secular growth trend in senior housing. These new demand drivers represent a shift from the old normal, where Indio was a slow-growth market that attracted investors seeking higher yields. It now represents a solid growth opportunity in addition to providing value.

GlobeSt.com: What else should our readers know about the Indio multifamily market?

Mogharebi: Despite the increased investment demand, Indio still offers investors an opportunity to acquire properties at a lower price on a pound-for-pound basis and still receive higher yields than are available in the primary markets to the west. There are approximately 25 million people within a 2.5-hour drive of Indio, making it a convenient getaway and retirement area. Thus, Indio’s long-term growth rate is stronger than average due to the expected growth in retirees and vacationers.

INDIO, Calif. (BUSINESS WIRE) The Mogharebi Group (“TMG”) has completed the sale of Mountain View Cottages, a 311-unit community that is located on Arabia Street in Indio, CA. The property sold with multiple offers for a sales price of $15.5 million. The buyer was a Simi Valley based private investor.
“Due to the low price per unit and attractive yield of this property, the potential buyer pool was significant in size,” says Alex Mogharebi, President of TMG. “To maximize the value of this community, we aggressively marketed it to our list of high net worth private clients several of whom are in exchange. Not only did the property have a strong going in yield, it also provided upside with improved management and renovations. Additionally, the neighborhood is experiencing growth due to new construction that is fueled by tourism demand from the increasing festival activity in the area.”
Alex Mogharebi and Otto Ozen of TMG represented the seller, a private investment group based in the San Gabriel Valley, and the Simi Valley based buyer.
According to Alex Mogharebi, “This sale demonstrates that private investors are outpacing other buyer types even through a rising-interest rate environment.”
Built on a 12.42-acre site in 1965, Mountain View Cottages is located at 46289 & 46299 Arabia Street in Indio. The community is near to the Indio Fairgrounds and the Larson Justice Center. It is minutes to the Empire Polo Club which is the site of renowned festivals including Coachella, Desert Trip, and Stagecoach.
Mountain View Cottages offers the finest in common area amenities. There is a sparkling swimming pool and a fun playground that is surrounded by a tropical landscape and beautiful mountain views. All the units are bungalow style, meaning that residents don’t share a wall with other units.
With unrivaled local knowledge, an extensive global network of top real estate investors, state-of-the-art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

Historically workforce oriented, the North County San Diego submarket of Vista has been transitioning to young professionals, the Mogharebi Group’s founder and principal Alex Mogharebi tells GlobeSt.com. The firm recently represented seller Pacific Development Partners LLC in the sale of Mesa Garden, a 124-unit apartment complex here, for $24.2 million to a private investment group based in San Diego. The sale price was 97% of list price. We spoke exclusively with Mogharebi about the Vista multifamily market and how it’s changing as North County becomes more popular for investors.

GlobeSt.com: How would you characterize the multifamily investment market in Vista?

Mogharebi: The Vista investment market is in transition. The Vista submarket is historically workforce oriented. Recently, the area has been transitioning to young professionals.

GlobeSt.com: Are there any new multifamily developments or exciting redevelopments happening in this market?

Mogharebi: In North County, there are several large projects that are presently under construction and total more than 1,000 units. To me, the most exciting properties in the market are the redevelopment opportunities that exist in older product in North County. These properties are exciting because they provide an opportunity to create value while remaining competitive against newer developments that command top-of-the-market pricing.

GlobeSt.com: What elements of this submarket are drawing in investors?

Mogharebi: Comparative affordability, improving retail mix and job growth are major drivers of new investment in this market. Another significant driver that is underway is improving infrastructure that will reduce commute time and increased connectivity to surrounding areas.

GlobeSt.com: What else should our readers know about the multifamily market in Vista?

Mogharebi: The SR-76 expansion is under construction and is going to improve drive times into surrounding areas, which will open up new jobs to local residents.

Steady gains in the US economy have resulted in net positives for the multifamily sector-will this wave continue for the foreseeable future? What’s driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

International Village, a UC Riverside-area apartment complex, has been sold to a private group based in the San Gabriel Valley.

The Mogharebi Group completed the sale. In a release, the company said the property sold for $20 million -about $217,000 per unit. The company says the property is on a ground lease from the university through 2049, making it exempt from property taxes.

The 124-unit Mesa Garden apartment complex in Vista, CA, has sold to a locally based private investor for $24.2M, or $195k/unit. The complex at 800 East Bobier Drive is near the intersection of Vista Way and close to state Highway 76, I-78 and I-5; Mira Costa College; TriCity Medical Center; and The Triangle and Vista Village shopping centers, as well as a short drive to the Pacific Ocean.

“Northern San Diego County has been slow to recover, but has recently become one of the hottest submarkets in Southern California,” says The Mogharebi Group president Alex Mogharebi. He, along with TMG VP Otto Ozen, repped the seller, Pacific Development Partners. Alex says rents are soaring along the I-78 Corridor due to being near employment, strong local job growth and comparative affordability.

He says the complex had multiple offers and sold at 98% of asking price. The complex was partially renovated in 2015, and with the completion of renovations and the project’s high-end amenities, Alex says it will command rents competitive with new product. Amenities include a pool, a spa, a sauna, a clubhouse, a billiard room, a fitness center, and basketball and tennis courts. Units feature plush carpeting or wood flooring, ceiling fans, dishwasher-disposals and refrigerators, and renovation is adding washer/dryer hookups in two-bedroom units.

The Mogharebi Group, has completed the sale of Mesa Garden, a 124-unit apartment complex. The $24.2 million sales price equates to $195,000 per unit. The buyer was a private investment group124-unit apartment complex built in 1977, brought $195,000 per unit.

Northern San Diego County has been slow to recover but has recently become one of the hottest submarkets in Southern California, says Alex Mogharebi, president ofTMG.

“The current momentum is due to close proximity to employment, strong local job growth, and comparative affordability,” Mogharebi said. “Consequently, rents have been soaring in the 1-78 Corridor and because of the property’s high-end common area amenities and a proven renovation program, the new owner will be able to renovate units to be more competitive with new development in the immediate submarket.”

Mogharebi and Otto Ozen of TMG represented the seller, Pacific Development Partners. The Mogharebi Group also procured multiple offers and ultimately, the buyer at 97% of list price.

Built on more than seven acres in 1977 and partially renovated in 2015, the property is located at 800 East Bobier Drive in Vista near east Vista Way. In close proximity to Highways-76 and -78, Interstates-5 and -15, Mira Costa College, the TriCity Medical Center, The Triangle and Vista Village shopping centers, and the Pacific Ocean.

Community amenities at Mesa Garden include a sparkling swimming pool, soothing spa, rejuvenating sauna, club house, billiard room, fitness center, full basketball court, and tennis court. Each unit features plush carpeting or wood flooring, ceiling fan, dishwasher / disposal, and refrigerator. Washer / dryer hookups can be renovated in the two bedroom units.

The Mogharebi Group (TMG) has completed the sale of Mesa Garden, a 124‐unit apartment complex, for $24.2 million. According to CoStar Group and public data, the buyer was Pine Vista Apartment Homes LLC, an affiliate of The Apartment Co. of Encinitas. Alex Mogharebi and Otto Ozen of TMG represented the seller, Pacific Development Partners, LLC. Built on over seven acres in 1977 and partially renovated in 2015, the property is located at 800 E. Bobier Drive in Vista.

Focusing on wealth creation for the client regardless of the type of transaction that will accomplish it is the thrust of the Mogharebi Group, a newly formed joint venture between Alex Mogharebi and Cohen Financial. As GlobeSt.com recently reported, Mogharebi says “in other firms, the brokerage and lending sides of the business tend to arm-wrestle as to which one ‘wins the transaction’ with a client,” whereby his firm aims to “eliminate that conflict and let the market decide the best solution, whether selling or refinancing a property.” We spoke exclusively with Mogharebi and Cohen Financial’s president of capital markets Manny Brown about the new venture and why its premise makes sense.

“After being in the market for more than 30 years with sales in excess of $5 billion and more than 50,000 units sold, we wanted to create a platform that is conducive for the client to
make the best decision for wealth creation,” Mogharebi tells us. “This new platform is a venture between two very unique organizations that is all about focusing on the client. The team is composed of a group of experts that specialize in a segment of our business that allows us to simultaneously provide asset disposition, location of exchange properties, as well as capital structuring services to our clients. There are others in the marketplace that have all of the pieces that we have; however, the lack of organization, cooperation and correct compensation results in conflicts of interest which keep investors from getting the information necessary to make the best decision.”

Mogharebi says the new company is culturally and economically aligned with the client’s best interest and will allow them to make the right decision, based on real-time market feedback without any additional expense. “No guessing—no conflicts. Just optimum execution and results.” The platform of the Mogharebi Group is based on 30 years of deep market knowledge and relationship building. “These relationships were built by understanding the client’s needs, goals, and risk tolerance, which helps me partner with the client to achieve their goals,” says Mogharebi. “This platform offers our clients true advisory services versus a transaction-based approach.”

Brown tells GlobeSt.com that the new firm is a unique opportunity in the marketplace. “Alex has built a business on the investment-sales side and has had to depend on other parts of different companies to fulfill what he wanted to do. He didn’t have the control or the organization he needed. He has the relationships and understands the clients, and culturally we mesh so well. Before we start talking about transactions, we focus on what the client’s business plan is, what they are trying to achieve, and that helps us to understand the strategy we must take. Alex and his team are also focused that way. The way compensation flows through the venture is neutral; there’s no pressure from any one area to try and get it done a certain way because we make more money that way.”

Brown adds that at this point, both partners are focused on making this proposition work in this market. “If it works out and can be scaled, we will do it. But we’re not focused on that.” The same goes for similar joint ventures between Cohen Financial and other firms. “We don’t want to get ahead of ourselves. In the short run, this has been amazing with Alex and us. We’re excited about it, but we have a lot of work ahead of us. We’re focused on bringing a quality, comprehensive product that’s neutral to us and beneficial to the client.”

Alex Mogharebi, a commercial real estate broker, has opened The Mogharebi Group in Costa Mesa’s South Coast Metro area to provide multifamily investment sales and financing services.
“There is a tremendous market opportunity in commercial real estate to bring the sophistication and expertise of Wall Street to ‘Main Street’ investors and truly accelerate their wealth creation,” Mogharebi said in a statement. “We offer our clients long-term industry relationships in the multifamily sector, combined with a seasoned team of professionals who enjoy a virtually unmatched track record of success.”

Alex Mogharebi, one of the leading commercial real estate (CRE) brokers in the U.S., has opened own new firm.

The Mogharebi Group which opened this week, will offer a unique platform of multifamily investment sales, financing and advisory services, Mogharebi says.

“There is a tremendous market opportunity in commercial real estate to bring the sophistication and expertise of Wall Street to main street investors, and truly accelerate their wealth creation,” said Mogharebi (pronounced mor-AH-bee). “We offer our clients long-term industry relationships in the multifamily sector combined with a seasoned team of professionals who enjoy a virtually unmatched track record of success. My clients have ranged from high net worth individuals to the most sophisticated organizations in the multifamily field. My team knows how to deliver the ultimate client experience and we are excited to do so now under our own brand.”

According to Mogharebi, a key market differentiation for the new firm is its ability to provide investment sales and/or the right lending products to affect the correct strategy for the client and execute the transaction that maximizes the client’s returns. While some firms offer both capabilities, The Mogharebi Group has a unique approach to determining whether selling or refinancing a property ideally serves the client’s best interest: In the final analysis the market will determine the best option.

“In other CRE firms, the brokerage and lending sides of the business tend to arm-wrestle as to which one wins the transaction with a client,” said Mogharebi. “We want to eliminate that conflict and let the market decide the best solution, whether selling or refinancing a property. With no risk or cost to the client, we will initiate a side-by-side brokerage and-refinance process, weigh how the market responds, and then present our clients with their top options.”

To form a seamless process between sales and lending, The Mogharebi Group has created a joint venture with Cohen Financial and its parent company Pillar. Cohen Financial is one of the nation’s leading originators of commercial and multifamily real estate financing. Pillar is one of the nation’s leading direct lenders of multifamily real estate and one of the few lenders in the country that offer Fannie Mae, Freddie Mac and Federal Housing Administration HUD loans alongside traditional life insurance company portfolio, CMBS conduit, and bridge loans under one roof. Through this venture, The Mogharebi Group brings direct lending products, expertise, and a unique business model focused on serving the full spectrum of multifamily investors’ needs.

“Alex Mogharebi brings decades of experience in helping investors build wealth through commercial real estate. We are very excited to help him expand his reach by offering the full array of financing products and services,” said Manny Brown, president of Capital Markets at Cohen Financial. “In a business that’s all about ability to execute, Alex has distinguished himself and stands in a class by himself. His new firm will provide a combination of marketing, sales, financing and advisory services that will produce the best possible outcomes for clients to achieve their personal and business goals.”

Prior to forming the group, Mogharebi was ranked No. 1 nationwide for 17 years at Marcus & Millichap and Berkadia, closing in excess of 50,000 units with total sales approaching $5 billion.

Cohen Financial is a diversified, commercial real estate capital services firm offering debt and equity placement, loan administration and advisory services.

A new investment banking entity sailed into Newport Beach this week, and it’s sure to send ripple effects across the Southern California investment real estate waters. After more than 17 years as a top national broker, including stints at Marcus & Millichap and Berkadia, Alex Mogharebi has formed The Mogharebi Group, a multifamily investment sales, advisory and lending firm.

The Mogharebi Group claims it’s distinctive because, through its joint venture with Cohen Financial, it eliminates the normal conflict between teams, and allows the market to determine whether the best strategy is to refinance or sell.

“In other CRE firms, the brokerage and lending sides of the business tend to arm-wrestle as to which one ‘wins the transaction’ with a client,” said Mogharebi. “In the final analysis, the market will determine the best option.”

Alex Mogharebi, one of the leading commercial real estate (CRE) brokers in the U.S., opened his new firm, The Mogharebi Group, today to offer a revolutionary platform of multifamily investment sales, financing and advisory services.

“There is a tremendous market opportunity in commercial real estate to bring the sophistication and expertise of Wall Street to ‘Main Street’ investors, and truly accelerate their wealth creation,” said Mogharebi (pronounced “mor-AH-bee”). “We offer our clients long-term industry relationships in the multifamily sector combined with a seasoned team of professionals who enjoy a virtually unmatched track record of success. My clients have ranged from high net worth individuals to the most sophisticated organizations in the multifamily field. My team knows how to deliver the ultimate client experience and we are excited to do so now under our own brand.”

According to Mogharebi, a key market differentiator for the new firm is its ability to provide investment sales and/or the right lending products to effectuate the correct strategy for the client and execute the transaction that maximizes the client’s returns. While some firms offer both capabilities, The Mogharebi Group has a unique approach to determining whether selling or refinancing a property ideally serves the client’s best interest: In the final analysis the market will determine the best option.

“In other CRE firms, the brokerage and lending sides of the business tend to arm-wrestle as to which one ‘wins the transaction’ with a client,” said Mogharebi. “We want to eliminate that conflict and let the market decide the best solution, whether selling or refinancing a property. With no risk or cost to the client, we will initiate a side-by-side brokerage‑and-refinance process, weigh how the market responds, and then present our clients with their top options.”

To form a seamless process between sales and lending, The Mogharebi Group has created a joint venture with Cohen Financial and its parent company Pillar. Cohen Financial is one of the nation’s leading originators of commercial and multifamily real estate financing. Pillar is one of the nation’s leading direct lenders of multifamily real estate and one of the few lenders in the country that offer Fannie Mae, Freddie Mac and Federal Housing Administration HUD loans alongside traditional life insurance company portfolio, CMBS conduit, and bridge loans under one roof. Through this venture, The Mogharebi Group brings direct lending products, expertise, and a unique business model focused on serving the full spectrum of multifamily investors’ needs.

“Alex Mogharebi brings decades of experience in helping investors build wealth through commercial real estate. We are very excited to help him expand his reach by offering the full array of financing products and services,” said Manny Brown, President of Capital Markets at Cohen Financial. “In a business that’s all about ability to execute, Alex has distinguished himself and stands in a class by himself. His new firm will provide a combination of marketing, sales, financing and advisory services that will produce the best possible outcomes for clients to achieve their personal and business goals.”

About The Mogharebi Group

Founded by Alex Mogharebi, one of the leading commercial real estate brokers in the U.S. and a leading expert on the multifamily sector in Southern California.  Prior to forming The Mogharebi Group, Alex was ranked No. 1 nationwide for 17 years at Marcus Millichap and Berkadia, closing in excess of 50,000 units and total sales approaching $5 billion.  The Mogharebi team brings together a group of professionals with world-class expertise, aligned culturally and economically, to pursue the best interests of its investors.  The team offers a one-of-a-kind approach to real estate investing, acting as a broker as well as delegated underwriter and loan servicer to offer direct‑lending options for its clients. To learn more about the firm, visit www.mogharebi.com.

About Cohen Financial

Cohen Financial is a diversified, commercial real estate capital services firm offering debt and equity placement, loan administration and advisory services. Cohen Financial is well recognized as one of the nation’s leading loan servicers and special servicers, as well as an originator of commercial and multifamily real estate financing. Known for finding innovative solutions to meet client needs, the company maintains an Equity Practice to help borrowers complete their capital needs and an enhanced Capital Advisory and Valuation Services to assist financial institutions and investors to better evaluate assets and investment opportunities.

Alex Mogharebi is the VP of investments with Marcus & Millichap’s Ontario, Calif., office. He joined the firm in 1989 and has since sold over 40,000 multi-family units totaling over $3 billion in sales. He is a member of the company’s Institutional Services Group and has been the number one Investment Associate nationwide 13 times.

CREF: How did you get into the real estate business?
AM: I was in mergers and acquisitions before I got into real estate. Real estate was a big part of the business and made up a significant portion of the transactions. When I got into real estate back in 1989, I saw a significant need to provide the same kind of professional services that were only accessible by large firms. I wanted to provide a similar type of advisory services to clients by bringing Wall Street to Main Street.

CREF: What notable deals have you been involved with?
AM: I successfully marketed and closed on a $142 million portfolio of eight properties with over 1,100 units in the Inland Empire. A sophisticated developer/builder client of ours had decided to dispose a portion of their portfolio. We marketed the portfolio just before the start of the holiday season and were able to generate high interest with over 40 offers in just a few weeks. Our challenge was to simultaneously manage and close all eight transactions with eight different buyers within a short window of time in order to accommodate our clients’ exchange goals. We ultimately closed the sales on all at a higher value than what our client initially expected.

CREF: In what commercial real estate industry do you specialize?
AM: I specialize in multi-family residential. Why? I’m a big believer in specialization. Real estate is a daily business and no single broker can be an expert in the different arenas of commercial real estate. By having in-depth knowledge of the product type as well as the market that we operate in, we can provide the type of information that allows apartment owners to make informed decisions.

CREF: How has the industry changed since you’ve been involved?
AM: I believe we have clearly moved from a transaction-oriented to a relationship-driven industry. I’ve assembled a team of experts that focus on a specific segment of the business to provide the high quality advisory services that nurtures and cultivates our relationships with clients.

CREF: How does the market look over the next 12 months?
AM: It looks like we will soon be in a recession. Residential construction is taking a hit not seen in decades and this has a significant multiplier effect on the rest of the economy. Job growth and incomes will be restrained which in turn will limit rent growth. The global liquidity crises and the ensuing tighter lending requirements have impacted pricing and resulted in an upward trend in capitalization rates for multi-family investments which is expected to continue well through 2008.

Ten Inland Empire real estate brokerages participated in our inaugural survey for determining the Top Performers in six commercial real estate sales categories. Alex Mogharebi of Marcus and Millichap in Ontario topped the list for investment specialists, posting $81.2 million in sales on 32 transactions. Mogharebi also topped the list for total sales dollar volume in 1995. Mark McAdams of Cushman & Wakefield in Ontario also appears at the top of two lists, office landlord representation and combined office representation. We had to add the latter category to our original list since some representatives had difficulty segregating their sales in retrospect. The consensus among the list toppers is that the commercial real estate market should be firming up this year and recovering well in 1997. Our thanks to those offices that participated, and our congratulations to the Inland Empire Business Journal Top Performers in commercial real estate sales for 1995!

Alex Mogharebi has a well-­deserved reputation as an agent who can move investment properties, especially apartment complexes. Unfortunately, Mogharebi didn’t reach his goal of $100 million in sales, but he tops the list as investment representative – and the list for overall dollar sales volume as well-based on 32 transactions.

His keys for success are simple and succinct: “Keep a promise, undersell and over deliver.” Mogharebi said that means: do what you say you’re going to do; let clients make the decisions; but give them more information and representation than they expect so that they can make a well-informed decision. Mogharebi has been active in real estate since 1978 and became involved with investment property sales in July, 1989, when he moved to a desk at Marcus & Millichap. He works 11 hour days Monday through Friday, and puts in two Saturdays per month. Leisure hours are often spent with family playing tennis.

“We are emerging from the past three years of an REO-foreclosure-market into a more stabilized market,” Mogharebi said about the direction of his specialty. He said vacancy factors are coming down, and he expects the market to be flat for the next year or two. “After that,” he said, “we should see increasing values in investment properties.”