Photo courtesy of Mogharebi Group

The Costa Mesa-based Mogharebi Group (TMG) has brokered the $34.6 million sale of Willow Grove Apartments, a 158-unit multifamily community at 3400 Coffee Road in Modesto, The Mogharebi Group announced on Oct. 15.

The seller is a Northern California-based private real estate investment firm. The firm had owned the property since 2017 and sold it to diversify its holdings outside of the state.

Willow Grove was built in 1990 and has 18 two- and three-story buildings with one- and two-bedroom units ranging from 700 to 900 square feet. The property has had high occupancy rates over the years and includes a resort-style pool and a fitness center.

Modesto’s multifamily market has a 3.6% vacancy rate, 1.3% below the national average of 4.9% in 2025. Stanislaus County, including Modesto, faces a shortage of around 20,000 affordable rental homes, according to 2024 data from the county.

To meet the seller’s preference for a discreet sale, TMG adjusted its marketing approach by targeting 1031 exchange buyers, high-net-worth individuals, syndicators and institutional investors. The buyer was a high-net-worth Northern California family.

“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.”