California Community Commands $38M
Tesseract Capital Group sold the property in a transaction arranged by The Mogharebi Group.
Tesseract Capital Group has sold Summerview Apartments, a gated community in Modesto, Calif. The property was acquired by Summerview Apartments ABC LP for $37.6 million.
Situated at 3601 Prescott Rd., Summerset Apartments was completed in 1988. The community features 136 residences across 20 one- and two-story buildings. One- and two-bedroom layouts range from 682 to 915 square feet.
The fully renovated units offer shaker cabinets, modern water fixtures, new baseboards, modern ceiling fans and LED recessed lighting. Community amenities include a pool, spa, fitness center, leasing office and secure parcel lockers.
The Mogharebi Group (TMG) arranged the sale of the community. TMG’s Otto Ozen, executive vice president, Brian Nakamura, senior vice president, and Nazli Santana, vice president, represented the seller.
“The primary challenge was navigating the intricate HUD loan assumption process, which is far more complex and time intensive than conventional loan assumptions,” Otto Ozen, TMG executive vice president, told Multi-Housing News. “This included securing approvals and managing extended timelines that could impact deal certainty. Coordinating communication between all parties—including the seller, buyer, HUD, attorneys and lenders—was critical to keeping the transaction on track.”
In a robust area
Prescott Road is a key artery in the Central Valley, enabling the property to enjoy strong visibility. An average of 14,866 vehicles pass Summerview Apartments each day. The route is encircled by a broad variety of eateries and stores. Nearby is Highway 99, which delivers convenience to both San Francisco and Sacramento.
The San Francisco and Sacramento employment hubs are each some 90 minutes away from the Modesto-Manteca submarket. It is situated in Central Valley’s northern San Joaquin Valley along the Tuolumne River.
The area is known for its comparative affordability, which has made it an appealing option for those employed in a hybrid work environment. Three shopping centers are within a three-minute drive and three hospitals are within 11 minutes.
Throughout 2024, the Sacramento area experienced robust demand, exceeding national averages. Average advertised asking rents rose 1.6 percent year-over-year through October, to $1,954, almost double the U.S. rate. Further, occupancy rates in stabilized properties also increased by 70 basis points to 95.3 percent during the same timeline.
