Visalia's 237-unit Oak View Apartment has changed hands between two Southern California-based parties. Photo via Mogharebi Group

In Visalia, where rentals are limited, an apartment complex has sold for $50 million.

The 237-unit Oak View Apartments was purchased by a Southern California private investor. Costa Mesa-based Mogharebi Group brokered the deal.

“Despite interest rates climbing rapidly making financing difficult and causing investors to hesitate, if not totally pull back, we were able to generate tremendous interest from a wide range of buyers resulting in one of the largest multifamily transactions ever in Visalia,” said Mogharebi Group Executive Vice President Otto Ozen, who represented the seller, a Los Angeles-based private investor.

The fully occupied apartment complex was built in 1990 and partially renovated in this year. Oak View has a mix of one-, two- and three-bedroom units ranging from 608 to 1,170 square feet on two stories. Oak View sits on a 16.46-acre site. The buyer plans to renovate the remaining 173 units to premium levels. Only one of the 37 duplexes on the property have been renovated.

“Rental growth has been good overall, but it has been softening during the last few months,” Ozen added. “Despite that trend, Visalia continues to show strength with a quality of life that is one of the best in the Central Valley.  In addition to the current value-add upside at Oak View Apartments, the new owner should continue to enjoy rent increases on annual renewals in the 9% range.”

Until recently, apartment construction has been limited in Visalia. The 691 permits issued for multi-family units in 2022 exceeded the number of permits granted from 2013 to 2021 combined, according to the City of Visalia’s website.