The Mogharebi Group (TMG) has arranged the $42.7 million sale of the Edge at Lakewood Apartments, a 196-unit apartment community in Modesto, California, on behalf of Osso Capital and Graceada Partners. The sale, which closed at the end of December, marks the largest multifamily transaction in California’s Central Valley in 2023.
The Edge at Lakewood Apartments was built in 1985. The property features 1-2 bedroom and 1-2 bathroom floorplans over two stories. Apartments range in size from 600 – 900 square feet. The property is pet friendly with minimal restrictions.
With a population of 6.5 million people, California’s Central Valley stretches 20,000 square miles from Sacramento to Bakersfield. Cities nestled within the Valley, such as Modesto, Fresno, and Visalia present an affordable alternative with rental rates significantly lower than those in San Francisco and the Greater Los Angeles area. These demand drivers are attracting investors, particularly private capital and exchange buyers to the region, according to Executive Vice President Otto Ozen. Moreover, Modesto’s proximity to the Bay Area and Sacramento makes it increasingly appealing, particularly within the context of rising affordability compared to core metropolitan areas, especially in the hybrid work environment. Essentially, many tenants benefit from reduced rental costs and larger living spaces while commuting to the office a couple of days per week.
As a leader in multifamily investment advisory since its founding in 2015, TMG has closed on more than 2,600 apartment units in Modesto specifically and more than 10,000 units in the Central Valley region, with a total value exceeding $1 billion. TMG commands a majority market share in the Central Valley region and has arranged for the two largest deals to close in the Modesto submarket this year.
