Two California-based private investors have acquired The Grove and Cottonwood Grove, two multifamily communities in Central California totaling 291 units. The assets traded for a total of $61.75 million.
The Mogharebi Group advised the seller of both properties in transactions that each drew multiple offers. The sellers had held the apartment communities for nearly 30 years but opted to leverage the full depreciation realized on both properties.
TMG carried out a customized marketing strategy aimed at 1031 exchange buyers, syndicators, institutional investors and high-net-worth individuals, aligning with the strong transactions volume seen across key markets on the West Coast.
Gated communities
Completed in 1994, The Grove is a 142-unit gated community featuring one-, two- and three-bedroom units set on an 11-acre site at 4801 Fruitvale Ave. in Bakersfield, Calif. According to Yardi Matrix, The Central Valley Coalition for Affordable Housing had owned the property, selling it to private investor Karen A. Woods for $28.25 million.
The Grove’s townhome-style units average more than 1,100 square feet, each with private garages. Features and finishes of apartments include fireplaces, in-unit full-size washer-dryers, private balconies, patios and bay windows. Common-area amenities include two pools, a spa, clubhouse, playground, fitness center and sundeck with grilling stations. About 20 percent of its residences are rent-restricted, providing ad valorem tax savings.
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Cottonwood Grove is a guard-gated community featuring 151 units spread across 26 two-story buildings on a 9.5-acre site in Fresno. Built in 1992, the property is located at 732 N. Clovis Ave. Yardi Matrix shows that Ashwood Construction was the previous owner, selling it to David H. Hussain for $33.37 million.
Its studio to three-bedroom residences offer vaulted ceilings, in-unit full-size washer-dryers, one-car garages and, in three-bedroom residences, fireplaces. Common-area amenities include two swimming pools, a fitness center, clubhouse, spa and controlled access. About 20 percent of the residences are rent-restricted at Cottonwood Grove.
The Central Valley’s population is forecast to increase by approximately 5 million over the next 35 years, according to data from California’s Department of Finance. By comparison, Los Angeles County is anticipated to lose 1.7 million people over the same period.
Five months ago, Presidio Capital Partners and Fuller Apartment Homes landed a $61 million construction loan for Park Center at Seven Oaks Phase I in Bakersfield, Calif. That project will bring 520 units to the market.
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Gillian Executive Search is a leader in Affordable Housing Development, Financing, Design and Construction recruiting. www.gessearch.com