Elm Tree Estates attracted strong investor interest, receiving multiple offers, according to the Visintainer Group. Photo via Apartments.com

Elm Tree Estates, a 32-unit property in Coalinga, has sold for over $3.7 million, which sets a city record at $116,406 per unit. 

The property is located at 654 Lucille Ave. in south Coalinga and has four two-story garden-style buildings that were built in 1985. The complex includes 16 two-bedroom and 16 three-bedroom units averaging 1,062 square feet, according to a news release.

Dustin Illic and Blake Blackburn, from Visintainer Group’s multifamily team, represented both the buyer and seller. The Visintainer Group is a Fresno-based company that provides commercial real estate advisory services. 

“This transaction represents a win-win for both parties,”  Ilic said in the news release announcing the sale. “The seller was able to maximize pricing due to the property’s strong rent performance, while the buyer acquired a stabilized asset with above-market returns.”

He added that the buyer chose Elm Tree Estates for its family-friendly two- and three-bedroom unit mix and better returns than other available properties, and the seller’s proven track record was also enticing to the buyer. 

“What really attracted investors and how we got multiple offers was really the proven track record that the seller had put in place with improving the property,” Illic said. 

Elm Tree Estates attracted strong investor interest, receiving multiple offers and closing with a gross rent multiplier of 8.21.

Illic noted how smaller cities like Coalinga are viewed as attractive to buyers.

“I think it really does show that those smaller areas and rural communities attract strong investors,” Illic said. “I would also say that they’re looking for properties that can prove a stable operational platform, but also have some continued upside if they continue to increase and put in some improvements to make it even nicer.”

With average in-place rents of $1,121, the property offers potential upside as over half of the units have already been renovated under a value-add strategy, according to the release.