149-Unit Multifamily Conversion
For Sale
$7,900,000
2700 White Ln, Bakersfield, CA 93304
Value-add studio apartment community in Southwest Bakersfield.
Property Size61,500 SF
Price / SF$132.55
Days on Market130
Property Features for 2700 White Ln
General Information
Standard status
Active
Size
61,500 SF
Property subtype
Multifamily
Occupancy
95%
Amenities
A 149-Unit Studio Community Located at the Highway 99 Interchange on White Lane with 170,000+ Vehicles Per Day, Offering a High-Visibility
Freeway-Adjacent Location in Southwest Bakersfield's Wible Orchard Neighborhood with Direct Access to Regional Employment and Retail
CUP Approval with Fire Sprinklers and Alarms Complete, As Conditional Use Permit 23-0642 Was Approved by the Bakersfield Planning Commission in February 2024
Fire Sprinkler and Alarm Systems Have Been Completed as the Largest Life-Safety Capital Item, Eliminating the Most Significant Compliance Risk for a New Owner
Total Stabilization Costs Typically Underwritten Between $1.0M and $1.3M Including Construction, Permits, And Contingency
In-Place and Projected Rents Are Supported by Direct Comparables and Section 8 Validation
Deep Section 8 Demand Supports the Lease-Up Strategy, With Approximately 40 Percent of Occupied Units Comprised of Section 8 Voucher Holders
Building Details
Building Size
61,500 SF
Units
149
Listing Agency:
Marcus & Millichap - Encino
(818) 212-2808
Listed By:
Glen Scher · License #License(s): CA: 01962976
(818) 212-2808
Source:
Marcusmillichap
Added: Apr 3
Changed: Aug 8
Last Checked: Aug 8 at 6:44AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap - Encino
Investment Insights
Based on property information with market context.
Located at the Highway 99 interchange in Southwest Bakersfield’s Wible Orchard neighborhood, 2700 White Lane is a 149-unit studio apartment community. Originally constructed in 1965 as a Howard Johnson hotel, the property has been converted to multifamily use under Conditional Use Permit 23-0642, approved on February 29, 2024. The two-story, L-shaped property encompasses approximately 59,600 square feet of building area. The 149 studio units average approximately 400 square feet each and feature kitchenettes in a hotel-conversion format. The site benefits from freeway visibility, with Highway 99 carrying more than 170,000 vehicles per day, and direct access from White Lane. The immediate area is characterized by working-class residential neighborhoods and commercial corridors. Valley Plaza Mall is approximately two miles east, and Downtown Bakersfield is approximately five miles northeast. The property currently operates at 65.1 percent occupancy, with 97 units leased and 52 vacant. Approximately 40 percent of occupied units are leased to Section 8 voucher holders, and the Bakersfield Housing Authority has approved contract rents at this address ranging from $975 to $1,095 per month. Fire sprinklers and alarm systems have been completed. Remaining CUP compliance items include five 8-by-20-foot masonry trash enclosures, six ADA parking stalls and path of travel, Los Carneros and White Lane sidewalk replacement, drive approaches and management signage, parking lot slurry seal and restripe, streetlight installation, landscaping, and perimeter security fence and gates.
Key Highlights
- Heavy value‑add opportunity with approved entitlement.
- Strong rental comparables support a stabilized rent assumption of $1,075 per month.
- Deep Section 8 demand with approved contract rents ranging from $975 to $1,095 per month.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$717,331
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
9.08%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$14,346,620
$14.3M
Cap Rate 7%
$10,247,586
$10.2M
Cap Rate 9%
$7,970,344
$8.0M
Market Conditions
NOI Build-Up for 59,600 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$1.39M $23.28/SF
− Vacancy
−$83.2K −$1.40/SF
EGI
$1.30M $21.88/SF
− OpEx
−$586.9K −$9.85/SF
NOI
$717.3K $12.04/SF
Area
Bakersfield, CA
Vacancy
6.00%
Lease Rate
$23.28 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$14,346,620
Cap Rate 7%
$10,247,586
Cap Rate 9%
$7,970,344
Alternative Uses
Best Use
Apartment 5plus
$10.25M
$8.97M – $11.96M
NOI $717,331 @ 7.0% cap · market cap 9.08%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$15.82M
$13.84M – $18.45M
NOI $1,107,130 @ 7.0% cap · market cap 14.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
611
Businesses Nearby
Explore this area
Business Placement
Demographics for 93304, CA
50,837
Population
16,380
Households
3.1
Avg Household Size
31
Median Age
11%
College-Educated
71%
High-School Grad
7.5 sq mi
ZIP Area
6,778
Density / Sq Mi
$51,627
Median Household Income
$31,562
Median Earnings
$1,141
Median Rent
$228,800
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Value-add studio apartment community in Southwest Bakersfield.
Where is this apartment building located?
The property is located at 2700 White Ln Bakersfield, CA.
What is the asking price?
The asking price for this property is $7,900,000.
What are key features of this property?
This property features: Heavy value‑add opportunity with approved entitlement.; Strong rental comparables support a stabilized rent assumption of $1,075 per month.; Deep Section 8 demand with approved contract rents ranging from $975 to $1,095 per month.
