Sandalwood Gardens Apartments image via apartments.com

Sandalwood Gardens, a 124-unit apartment complex off of West Dakota and North Fruit avenues in Fresno, was sold for $15 million by The Mogharebi Group, a Southern California brokerage firm that has long owned the property. 

Robin Kane and Brendan Kane of The Mogharebi Group – senior vice president and vice president, respectively – represented the seller. The buyer, also from Southern California, is a private capital investor. The property generated more than 20 offers. 

The property sold for over 10% over the listing price. 

Kane said that the appetite for this particular apartment complex was due to below-market rent, making it a viable investment. There is room to raise rent, as it currently has an estimated monthly rent in the mid-$800s. 

The demand is strong for renters, too. With the housing market being hot for buyers, many people are opting to rent. As opposed to a commercial, retail or agricultural investment, multi-family sales are a safe asset class because the need for renting, due to sheer lack of inventory, is not going away, he said. 

With millennials getting beat out of the housing market, many opt to rent long term, and it keeps them from being locked into the same community for too long. 

“Through our proprietary 1031 exchange platform, which includes a robust network of private, high net-worth and exchange buyers, we were able to drive the value and successfully close above list price,” said Kane.

The apartment complex was built in 1986 on 5.45 acres, located at 3880 N. Fruit Ave. It features several community amenities, including garages, covered parking, laundry facilities, two pools and a commercial building that is leased to a daycare center.