The Mogharebi Group (TMG) has arranged the sale of Tyner Ranch Apartments, a 168-unit multifamily community in the Central Valley city of Bakersfield, Calif. for nearly $31 million. Mark Bonas, Senior Vice President for TMG represented the seller, Hardt Investments, of the fully occupied community that traded to a Modesto-based private investment group.
“The Central Valley is adding significant economic momentum from the energy, healthcare, government and other sectors to its traditional agricultural base, but it’s not adding enough housing to keep up with the resulting in-migration of people chasing that opportunity while leaving behind the higher cost of living in coastal cities,” said Bonas. “As a result, the supply and demand dynamics from the strong regional economy and steady population growth have produced favorable multifamily investment conditions.”
Built in 2006-2007, Tyner Ranch Apartments feature spacious two- and three-bedroom floorplans ranging in size from 788 to 1,193 square feet. The single-family-residential-style apartment homes include fully equipped kitchens, attached garages and private backyards with patios that look out onto the Tyner Ranch’s spacious green belt and connect to picnic areas with grilling stations between the residential buildings.
“With asking rents at Tyner Ranch considerably below market, the buyer was attracted by the opportunity for revenue recapture over the next 12 months and almost immediately enhance yield by 10 percent on currently established market rents,” Bonas said. “That near-term gain comes amidst the bigger picture of sellers we’ve represented achieving up to 50 percent margins after only a couple of years of ownership. That speaks volumes about the investment market in the Central Valley.”
Since its founding in 2015, TMG, one of the leading multifamily brokers in the state of California, according to real estate research and advisory firm Green Street, has been involved in the sale of more than 6,500 units in the Central Valley with sales nearing $1 billion.
California’s Central Valley stretches approximately 450 miles from Bakersfield, the state’s ninth most populous city, north to Sacramento. The 70-city region has an inventory of 1,055 multifamily properties of 50 units or more totaling approximately 123,000 units, according to Yardi Matrix.
Bakersfield, the county seat of Kern County, is 110 miles north of Los Angeles and 274 miles south of San Francisco. The county is the most productive oil-producing county and the fourth-most productive agricultural county by value in the United States. According to the State of California Employment Development Department, industry employment in Kern County is projected to increase by 16.1 percent to 391,800 by 2024 with total non-farm employment projected to grow by more than 41,200 jobs during the period.