The Mogharebi Group (TMG) has successfully brokered the $34.6 million sale of Willow Grove Apartments, a 158-unit multifamily community located at 3400 Coffee Road in Modesto, California.
The seller, a privately held real estate investment firm based in Northern California, had owned the property since 2017, and chose to divest the asset as part of its strategy to diversify holdings outside of California.
Built in 1990, Willow Grove Apartments comprises 18 two- and three-story buildings offering spacious one- and two-bedroom floor plans ranging from 700 to 900 square feet.
Modesto’s multifamily market continues to show strength, with an average vacancy rate of just 3.6%—well below the national average of 4.9% projected for year-end 2025. This tight vacancy environment is driven by consistent population growth over the past 10 years, combined with a dearth of new construction resulting from high barriers to entry. As of 2024, Stanislaus County, which includes Modesto, needs approximately 20,000 new affordable rental homes to keep up with the demand, according to the County.
The seller did not want to broadly market the property, so The Mogharebi Group was able to custom-tailor its marketing approach to fit the client’s needs by making discrete, but targeted calls to 1031 exchange buyers, high-net-worth private individuals, syndicators, and institutional buyers. The winning bidder was a high-net-worth private family based out of Northern California.
“High costs in coastal California cities have resulted in a regional migration to more affordable inland locations like Modesto, especially with the hybrid-work environment, which has contributed to increased demand in what is a supply constrained market,” said Mogharebi Executive Vice President Otto Ozen. “This imbalance makes Modesto, Manteca, Ripon, and Turlock area an attractive market for multifamily investors. Plus, the opportunity to improve the common areas and renovate the units added further appeal.”
Ozen, along with Nazli Santana and Brian Nakamura, collectively represented the seller in the transaction.
