Multifamily brokerage firm The Mogharebi Group (TMG), representing a private investor based in Salt Lake City, Utah has successfully brokered the sale of a 108-unit apartment community in Palm Springs, Calif. 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 percent according to TMG research. Despite an estimated population growth of 6 percent 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 percent 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.”