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12/13/23
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College Apartments, a 40-unit multifamily property in Fresno, traded hands for $4.6 mil ($115k/unit) as the final piece of complex six-property reverse 1031 exchange transaction.
Robin Kane and Brendan Kane with The Mogharebi Group were engaged by a Central Valley-based investor to sell four small multifamily assets in Fresno, Visalia and Martinez and move the equity into larger and newer properties as part of a 1031 Exchange. While marketing the properties the Kanes identified and advised the client on the acquisition of two larger communities in Fresno totaling 137 units in separate transactions totaling approximately $20 mil.
“A reverse 1031 Exchange can be extremely difficult, especially in this challenging market. If we don’t close on time, the client could face a severe liquidity problem while incurring a potential tax liability,” said Robin Kane. “With the 1031 upleg complete, it was now on us as brokers to sell all four existing properties to create a non-taxable event and use the proceeds to return equity back to the client.”
College Apartments: 4550-4596 East Sierra Madre Ave, Fresno |
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The fourth and final piece of the 1031 downleg was the sale of the College Apartments property near the asking price of $4.695 mil. Located at 4550-4596 East Sierra Madre Ave, College Apartments features a mix of one- and two-bedroom floor plans ranging from 650 sf to 950 sf.
The property was built in 1957 on .36 acres of land directly across the street from Fresno State University. The sale was facilitated by an assumption of 30-year loan at 4.0%. The four property sales, which sold in separate transactions to separate buyers, totaled nearly $21 mil. Including the acquired properties, there was a total of 264 units involved.
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