2700 White Lane | Investment Offering

Property Overview

2700 White Lane • Bakersfield, CA 93304

Marcus & Millichap is pleased to exclusively offer 2700 White Lane, a 149-unit studio apartment community situated at the Highway 99 interchange in Southwest Bakersfield’s Wible Orchard neighborhood. Originally constructed in 1965 as a Howard Johnson hotel, the property has been converted to multifamily use under Conditional Use Permit 23-0642, approved by the Bakersfield Planning Commission on February 29, 2024. The asset is being offered as a court-supervised sale through a receivership, presenting a compelling heavy value-add opportunity with a defined scope of remaining work, strong rental comparables, and deep Section 8 demand.

The two-story, L-shaped property encompasses approximately 61,500 square feet of building area across 149 studio units averaging approximately 400 square feet each, with kitchenettes in a hotel-conversion format and exterior corridors. The site features a kidney-shaped swimming pool and a large surface parking lot. The property benefits from exceptional freeway visibility — Highway 99 carries more than 170,000 vehicles per day — and direct access from White Lane, one of Southwest Bakersfield’s primary east-west arterials. Valley Plaza Mall is approximately two miles east and Downtown Bakersfield approximately five miles northeast.

The property currently operates at 65.1% occupancy, with 97 units leased and 52 vacant (including 4 on notice and 2 in eviction). Approximately 40% of occupied units (~39 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. This voucher concentration represents a strategic asset: Section 8 demand in the Southwest Bakersfield submarket is strong, providing a reliable tenant pipeline once the property achieves full CUP compliance and professional stabilization.

Market rent support is anchored by Ming Tree Apartments at 5601 Ming Avenue, which achieves $1,075 per month for studios 2.5 miles from the subject on a comparable commercial corridor — representing current achievable market rent, not a projection. Same-ZIP-code comparables (93304) average $1,057/month unadjusted, while the broader Southwest Bakersfield studio market (93309) averages $1,046/month adjusted. A stabilized rent assumption of $1,075/month is conservative relative to these benchmarks and falls $20 below the maximum Section 8-approved contract rent at the property.

Location

The subject property occupies a high-visibility position at the White Lane and Highway 99 interchange in Southwest Bakersfield, within the Wible Orchard neighborhood of Kern County. Southwest Bakersfield is a predominantly working-class residential submarket with established apartment communities and commercial corridors along White Lane, Ming Avenue, and Wible Road. The area benefits from durable rental demand driven by Bakersfield’s affordable cost of living relative to coastal California, steady population growth, and a diversified local economy anchored by agriculture, petroleum, logistics, and healthcare. Recent transaction activity — including Park Villa (1405 White Lane, Dec 2025) and Chateau Villa (Wible Orchard, Nov 2025) — confirms sustained investor commitment to the submarket.

Target Buyer Profile

Value-Add Operators — Experienced investors who can execute the remaining CUP compliance work, lease up 52 vacant units, and stabilize operations to capture the full spread between distressed as-is pricing and stabilized asset performance.
Section 8 / Affordable Housing Investors — Operators comfortable with voucher-based tenants who benefit from the deep Section 8 demand pipeline in Southwest Bakersfield and HA-approved contract rents up to $1,095/month at this address.
1031 Exchange Investors — Buyers seeking tax-advantaged deployment into a scaled asset at $66,779/unit — well below replacement cost — with a clear path to 10%+ stabilized returns.
Regional Funds & Family Offices — Institutional-quality unit count (149 units) in the Central Valley’s largest metro, targeting workforce housing with long-term appreciation potential.

Broad appeal across buyer segments supports competitive pricing and a short expected marketing period.

Property Information

Address	2700 White Lane, Bakersfield, CA 93304
County	Kern
Year Built	1965 (Howard Johnson hotel conversion)
Units	149 Studios (0BR/1BA)
Building SF	~61,500 SF
Avg Unit SF	~400 SF
Lot Size	2.72 Acres
Stories	2

Construction	Commercial-grade (hotel conversion); L-shaped w/ exterior corridors
Zoning	C-2 (Regional Commercial) w/ CUP 23-0642
Parking	Surface lot (restripe + ADA per CUP)
Amenities	Swimming pool (kidney-shaped); on-site laundry (verify)
Occupancy	65.1% (97 leased / 52 vacant)
Section 8	~40% of occupied units (~39 units)
Sale Type	Court-supervised (receivership / REO)
Offering	As-is

Investment Highlights

Key Opportunity Drivers

149-Unit Studio Community at Highway 99 Interchange

Single-asset scale of 149 studios on White Lane at Highway 99, the Central Valley’s primary north-south corridor (170,000+ vehicles per day).
High-visibility, freeway-adjacent location in Southwest Bakersfield’s Wible Orchard neighborhood with direct access to regional employment and retail.

CUP Approved with Fire Sprinklers & Alarms Complete

Conditional Use Permit 23-0642 approved February 2024, authorizing multifamily use in the C-2 zone.
Fire sprinkler and alarm systems completed (Sep 2025) — the single largest life-safety capital item — eliminating the most significant compliance risk for a new owner.

Defined and Permitted Scope of Work

Remaining CUP compliance items are specified in the city punch list and a Patterson & Sons construction estimate (~$745K base).
Total cost to stabilize typically underwritten at $1.0M–$1.3M including permits, engineering, fence, and contingency. A buyer inherits a clear checklist with known scope — not an open-ended renovation.

Rent Supported by Direct Comp & Section 8 Validation

Ming Tree Apartments achieves $1,075/month for studios 2.5 miles away on a comparable commercial corridor — current market rent, not a projection.
Bakersfield Housing Authority has independently approved contract rents up to $1,095 at the subject property. Our $1,075 stabilized assumption is $20 below the HA max — conservative.

Same-Street Sale Comp Anchors Market Context

Park Villa Apartments at 1405 White Lane sold in December 2025 at a 7.00% cap rate per CoStar.
Additional comps — The New Yorker (57% studios, 8.15% cap) and Chateau Villa (Wible Orchard, 8.04% cap) — confirm active investor demand and provide underwriting context.

Deep Section 8 Demand & Value-Add Upside

~40% of occupied units are Section 8 voucher holders. Strong voucher demand in SW Bakersfield provides a reliable tenant pipeline for leasing 52 vacant units.
Current occupancy of 65.1% with ongoing eviction and lease-up activity. Stabilization captures the full spread between distressed pricing and stabilized performance.

Minimal Natural Hazard Exposure

Bakersfield is located outside California’s primary wildfire, flood, and seismic hazard zones, presenting minimal natural disaster exposure relative to Los Angeles, the Bay Area, and other major California markets.
The Central Valley’s inland geography avoids coastal flood risk, tsunami exposure, and wildland-urban interface fire designation.

Court-Supervised Sale with Clear Process

Receivership sale with established legal framework. Experienced multifamily operators and institutional buyers benefit from a transparent, court-supervised disposition process.

Building Systems & Capital Requirements

CUP Compliance & Condition Assessment

Site & Building Systems

System	Detail	Notes
Fire Sprinklers & Alarms	COMPLETED	Installed per CUP (Sep 2025); largest life-safety item done
Roof	Flat, original / patched	1965 construction; inspect during due diligence
Plumbing	Original 1965 (verify condition)	Master-metered water & sewer
HVAC	Individual unit-level (verify type)	A/C critical — Bakersfield 100°F+ summers
Electrical	Original 1965; master-metered	GFCI upgrades may be req’d per CUP (~$1,500/unit if req’d); PG&E master meter; largest single expense (~$145K/yr)
Unit Configuration	Kitchenette (not full kitchen)	Hotel-to-residential conversion format
Pool	Kidney-shaped; condition TBD	Visible in aerial photos; verify operability
Parking	Large surface lot	CUP requires restripe + 6 ADA stalls + path of travel
Elevator	None	2-story walk-up with exterior corridors
Laundry	On-site (verify)	Laundry income not underwritten
Security	On-site guard 8pm–6am	CUP-mandated; $120K/yr; 6-month Planning Commission review
On-Site Management	Full-time PM, M–F 8am–5pm	CUP-mandated (permanent; runs with the land)
Utilities	Master-metered (all)	Tenants do not pay utilities directly; RUBS opportunity

CUP Compliance Status — Detailed Punch List

Requirement	Status	Patterson & Sons Est.	Notes
Fire sprinklers / alarms	COMPLETED	—	Life-safety capital invested
On-site management (M–F 8–5)	In Compliance	—	CUP ongoing requirement
Security guard (8pm–6am)	In Compliance	—	CUP ongoing requirement
Lease agreements w/ Code of Conduct	In Compliance	—	CUP ongoing requirement
Graffiti removal (72 hrs)	In Compliance	—	CUP ongoing requirement
Trash enclosures (5 × 8’×20’ masonry)	PENDING	$205,290	Largest single construction item
Sidewalk / curb replacement	PENDING	$191,028	Los Carneros + White Lane ($158K + $33K)
ADA parking (6 stalls) + path of travel	PENDING	$128,680	ADA compliance required
Drive approaches (2) + signage	PENDING	$110,800	$89,200 approaches + $21,600 signage
Landscaping	PENDING	$50,000	CUP site improvement
Parking lot slurry seal / restripe	PENDING	$44,560	Full parking lot resurface
Streetlight (Los Carneros)	PENDING	$21,500	Single streetlight installation
Security fence / gates	In Progress	$50K–$100K	Not in Patterson est.; separate contractor
Block watch program	PENDING	—	Status to be confirmed
Lot line adjustment	In Progress	—	Filed with Planning Division

Capital Budget Summary

Patterson & Sons base CUP estimate	~$745,334 (plans/permits excluded)
Permits, engineering, contingency, fence	~$255K – $555K
Total construction range	$1.0M – $1.3M

Park Development Fee (CUP)	$312,155 ($2,095 × 149 units)
Transportation Impact Fee (CUP)	$50,000 – $100,000 (TBD)
Sewer Connection Fee (CUP)	$10,000 – $30,000 (TBD)
Total impact fees	~$372K – $442K (negotiate at closing)

Regulatory & Compliance Summary

Zoning, Permits & Hazard Profile

Item	Status / Detail
Zoning	C-2 (Regional Commercial)
Conditional Use Permit	CUP 23-0642 — approved Feb 29, 2024 (authorizes multifamily use)
Parcel	Multiple parcels (lot line adjustment in progress)
Rent Control (RSO)	N/A — Bakersfield not subject to LA RSO; CA AB 1482 (Tenant Protection Act) applies
Code Violations	CUP punch list items outstanding (see Building Systems section)
Certificate of Occupancy	Pending completion of CUP compliance items
Environmental	1965 hotel conversion; Phase I ESA recommended during due diligence
Seismic Zone	Low — Bakersfield outside primary seismic hazard zones
Flood Zone	To be verified (minimal expected exposure)
Fire Hazard	Low — outside wildland-urban interface
Coastal Zone	N/A

Legal Context: This is a court-supervised sale through a receivership. The property operates under CUP 23-0642, which authorizes the hotel-to-residential conversion. Fire sprinkler and alarm systems have been completed. The buyer will assume responsibility for completing the remaining CUP punch list items and obtaining a final certificate of occupancy. The receivership process provides a transparent, court-supervised disposition framework.

Comparable Sales

Recent Closed Transactions • Bakersfield Metro

Interactive map available at the live URL.

#	Property	Address	Date	Price	Units	$/Unit	$/SF	Cap	Type	Yr Built	Occ
1	Park Villa	1405 White Lane	Dec 2025	$18,600,000	225	$82,667	$139	7.00%	100% 1BR	—	87%
2	The New Yorker	1906 18th Street	Aug 2025	$3,700,000	35	$105,714	$204	8.15%	57% Studios	1912/2020	97%
3	Chateau Villa	420-426 Real Road	Nov 2025	$7,100,000	64	$110,938	$147	8.04%	100% 2BR	—	95%
☆	Subject	2700 White Lane	—	$9,950,000	149	$66,779	$162	—	100% Studios	1965	65.1%

Cap Rate Triangulation

Source	Raw Cap	Adjustment	Implied Cap for Subject
Park Villa (same street)	7.00%	+75–100 bps (studios/conversion)	7.75% – 8.00%
The New Yorker (57% studios)	8.15%	+25–50 bps (unrenovated condition)	8.40% – 8.65%
Chateau Villa (Wible Orchard)	8.04%	+25–50 bps (studios vs 2BR)	8.29% – 8.54%

Park Villa Apartments (1405 White Lane) is the anchor comparable — located on the same street and sold in December 2025 for $18.6M at a 7.00% cap rate per CoStar. As a 225-unit, 100% one-bedroom property at 87% occupancy, it represents the strongest locational match. Studio and hotel-conversion product typically commands a 75–100 basis point premium to conventional apartment cap rates due to higher turnover and management intensity, implying a 7.75%–8.00% cap range for the subject at stabilization.

The New Yorker (1906 18th Street) provides the closest unit-type match with 57% studios. Built in 1912 and renovated in 2020, it traded in August 2025 at an 8.15% cap, fully stabilized at 97% occupancy. Adjusting for the subject’s unrenovated condition adds 25–50 bps, suggesting an 8.40%–8.65% implied cap.

Chateau Villa (420-426 Real Road) is located in the Wible Orchard submarket — the same neighborhood as the subject — and sold in November 2025 at 8.04% cap. As a 64-unit, all-2BR property at 95% occupancy, the studio format adjustment of 25–50 bps implies an 8.29%–8.54% cap for the subject.

At the offered price of $9,950,000 ($66,779/unit), the subject is priced at a meaningful discount to all three comparables on a per-unit basis, reflecting its distressed occupancy and remaining CUP work. This pricing provides significant upside for a buyer who can execute the stabilization program.

Note: Studio and hotel-conversion product typically commands a 75–100 bps premium to conventional apartment cap rates due to higher tenant turnover, lower rent per unit, and more management-intensive operations. All sale comp data sourced from CoStar. LIHTC/affordable housing transactions excluded (reflect tax credit value, not income value).

Rent Comparables

Studio Rents • Southwest Bakersfield

Interactive map available at the live URL.

#	Property	Address	ZIP	Rent	$/SF	Dist	Note
1	Sierra Terrace East	4419 Belle Terrace	93304	$1,095	$2.74	1.5 mi	Same ZIP; newer finishes
2	Terrace West	1000 McDonald Way	93304	$1,080	$2.70	2.0 mi	Same ZIP; near Valley Plaza
3	Ming Tree (Anchor)	5601 Ming Ave	93309	$1,075	$2.69	2.5 mi	Direct comp; no adj needed
4	Del Pine Terrace	4301 Belle Terrace	93304	$1,060	$2.65	1.5 mi	Same ZIP; Belle Terrace corridor
5	The Sunset	4401 Belle Terrace	93304	$1,050	$2.63	1.5 mi	Same ZIP; B/C- quality
6	Columbard	5801 Ming Ave	93309	$1,050	$2.63	2.5 mi	Ming corridor; mid-tier
7	Cedarwood	5101 Belle Terrace	93304	$1,000	$2.50	1.5 mi	Same ZIP; C-quality
8	Norwest	1300 Valhalla Dr	93309	$955	$2.39	3.0 mi	Market floor; C-/D+ quality

Section 8 Validation
• HA approved contract rents at subject: $975 – $1,095/month
• HA conducts independent rent reasonableness studies: Yes
• HA has physical knowledge of subject condition: Yes
• Maximum approved rent at this address: $1,095/month
• Our stabilized assumption ($1,075) vs. HA max: $20 below — conservative

Rent Conclusion

Method	Result
Ming Tree Direct Comp (anchor)	$1,075
93304 ZIP Average (adjusted)	$1,036
93309 Average (adjusted)	$1,046
Section 8 Contract Range	$975 – $1,095
Selected Stabilized Rent	$1,075/month ($2.69/SF)

Ming Tree Apartments (5601 Ming Avenue) serves as the anchor comparable, achieving exactly $1,075/month for studios on a comparable high-traffic commercial corridor. No adjustment is required — this is current market rent, not a projection.

Same-ZIP-code (93304) comparables along the Belle Terrace corridor range from $1,000 (Cedarwood) to $1,095 (Sierra Terrace East), averaging $1,057/month unadjusted. The $1,075 stabilized assumption is $18 above the 93304 average ($1,057), $20 below the maximum Section 8-approved rent ($1,095), achievable with CUP compliance improvements, and represents realistic C-quality positioning for a stabilized hotel conversion. The potential rent of $1,100/month in the pro forma reflects modest upside with continued market growth. All rent data is current asking rent as of January 2026.

Financial Analysis

Operating Performance & Returns at Offered Price

$66,779Price Per Unit

$161.79Price Per SF

7.50%Year 1 Cap Rate

10.05%Pro Forma Cap Rate

Unit Mix & Rent Summary

Unit Type	# Units	Avg SF	Rent Range	Avg Rent	Rent/SF	Mo. Income	Mkt Rent	Mkt/SF	Mkt Monthly
Studio (Market)	57	400	$825–$1,700	$925	$2.31	$52,741	$1,100	$2.75	$62,700
Studio (Sec 8)	40	400	$850–$1,098	$997	$2.49	$39,884	$1,100	$2.75	$44,000
Studio (Vacant)	52	400	—	$1,100	$2.75	$57,200	$1,100	$2.75	$57,200
Total / Wtd Avg	149	~400	—	$1,006	$2.44	$149,825	$1,100	$2.67	$163,900

Full unit-by-unit rent roll available upon request. Gross annualized rents: Scheduled $1,797,900 / Potential $1,966,800. Unit distribution: 38% market-rate, 27% Section 8, 35% vacant.

Operating Statement

Income	Year 1	Pro Forma	Per Unit	Per SF
Gross Scheduled Rent	$1,797,900	$1,966,800	$13,200	$31.98
Physical Vacancy (5.0%)	($89,895)	($98,340)	($660)	($1.60)
Bad Debt / Econ Vacancy (2.0%)	($35,958)	($39,336)	($264)	($0.64)
Effective Rental Income	$1,672,047	$1,829,124	$12,276	$29.74
Utility Bill-Back (RUBS) ^[1]	$62,400	$164,400	$1,103	$2.67
All Other Income ^[2]	$3,000	$8,000	$54	$0.13
Effective Gross Income	$1,737,447	$2,001,524	$13,433	$32.55

Expenses	Year 1	Pro Forma	Per Unit	Per SF
Real Estate Taxes ^[3]	$139,300	$139,300	$935	$2.27
Insurance ^[4]	$104,300	$104,300	$700	$1.70
Utilities – Water & Sewer ^[5]	$70,000	$70,000	$470	$1.14
Utilities – Gas ^[6]	$39,200	$39,200	$263	$0.64
Utilities – Electric ^[7]	$145,000	$145,000	$973	$2.36
Trash Removal ^[8]	$40,000	$40,000	$268	$0.65
Repairs & Maintenance ^[9]	$89,400	$89,400	$600	$1.45
Security (CUP-Mandated) ^[10]	$120,000	$120,000	$805	$1.95
Contract Services ^[11]	$36,000	$36,000	$242	$0.59
Marketing & Advertising ^[12]	$6,000	$6,000	$40	$0.10
Payroll ^[13]	$80,000	$80,000	$537	$1.30
General & Administrative ^[14]	$15,000	$15,000	$101	$0.24
Operating Reserves ^[15]	$37,250	$37,250	$250	$0.61
Management Fee (4% EGI) ^[16]	$69,498	$80,061	$537	$1.30
Total Expenses	$990,948	$1,001,511	$6,722	$16.28
Expenses as % of EGI	57.0%	50.0%	—	—
Net Operating Income	$746,500	$1,000,013	$6,711	$16.26

Returns at $9,950,000

Metric	Year 1	Pro Forma
Cap Rate	7.50%	10.05%
GRM	5.53x	5.06x
Cash-on-Cash (free & clear)	7.50%	10.05%
Price Per Unit	$66,779
Price Per SF	$161.79

Operating Summary

Offering Price	$9,950,000
Down Payment	$9,950,000 (100% — Free & Clear)
Number of Units	149
Gross SF	61,500
Lot Size	2.72 Acres
Year Built	1965
Economic Occupancy	93.0% (at stabilization)

RUBS Upside: No RUBS currently in place. Year 1 assumes $62,400 (RUBS on 52 vacant units at $100/unit/mo with terms embedded in new leases). Pro Forma assumes $164,400 ($100/unit/month on 137 occupied units at 93% occupancy), recovering ~55% of $294K gross utility cost. All utilities are master-metered.

Security Cost Potential Savings: If CUP security requirement is discontinued at the 6-month Planning Commission review, NOI improves by ~$120,000/year.

Notes to Operating Statement

[1]: RUBS: No RUBS currently in place. Year 1: $62,400 = $100/unit/mo on 52 vacant units with RUBS embedded in new lease terms at close. Pro Forma: $164,400 = $100/unit/mo on 137 occupied units (93% occupancy), phased in over 12 months as existing leases renew. Recovers ~55% of $294K gross utility cost. All utilities are master-metered.
[2]: Other Income: T-8 actuals: $7,882/8 months (damage withholding, app fees, misc). Year 1 $3,000 reflects receivership run rate; Pro Forma $8,000 reflects stabilized collections. Laundry income not underwritten.
[3]: Real Estate Taxes: 1.40% of $9.95M per Prop 13 reassessment at sale. Kern County median effective rate is ~1.42%. Not on receiver’s P&L. CUP Condition III.E1 requires formation of a maintenance district, which may add $2,000–$5,000/year not included above.
[4]: Insurance: Estimated at $700/unit. Not on receiver’s P&L (carried by court). CA fire insurance market elevated. Buyer should obtain quotes during due diligence.
[5]: Water & Sewer: T-8: $56,757/8 months. Sewer includes $20.9K catch-up in June; normalized to ~$2K/month. Water annualizes to ~$48K, sewer ~$22K. Combined: $70,000 ($470/unit). Master-metered; offset by RUBS.
[6]: Gas: T-8: $26,162/8 months, annualized to $39,200 ($263/unit). Master-metered. Consistent seasonal pattern.
[7]: Electric: T-8: $126,101/8 months. Oct $42.6K spike is PG&E catch-up billing. Nov-Dec baseline ~$9.7K/month; summer $17K–$24K/month (Bakersfield 100°F+, master-metered A/C). Blended annual: $145,000 ($973/unit). Single largest expense. Buyer should verify with 24-month PG&E history. Offset by RUBS.
[8]: Trash: T-8: $29,771/8 months (annualizes to ~$45K). Using $40,000 ($268/unit); T-8 includes startup hauling. CUP requires 5 new trash enclosures (capital, not in operating expenses).
[9]: R&M: $600/unit normalized post-renovation. T-8 total was $461K/8 months; ~$320K (70%) was one-time: $143K capital replacements, $40K mass make-ready (50+ vacant units), $92K security install, $45K deferred maintenance blitz. $600/unit appropriate years 1–2; budget $800–$1,000/unit years 3–5.
[10]: Security: CUP II.6 requires nightly guard 8pm–6am for minimum 6 months after final CO. CUP II.7 provides for Planning Commission review at 6 months; may extend or discontinue based on property performance and police activity. Stabilized at $10K/month ($120K/year). If discontinued, NOI improves by ~$120K.
[11]: Contract Services: Landscape $425/mo, pool $625/mo, pest ~$5K/yr, sprinkler ~$2.5K/yr, cleaning ~$2.8K/yr. T-8: ~$22.5K/8 months. $36,000 ($242/unit) includes buffer.
[12]: Marketing: $40/unit. No T-8 marketing spend. Strong Section 8 voucher demand in SW Bakersfield; Housing Authority has approved contract rents of $975–$1,095 at this address.
[13]: Payroll: CUP II.5 mandates full-time on-site PM, M–F 8am–5pm (permanent, runs with the land). Budget: site manager ~$42K, PT maintenance tech ~$28K, taxes/benefits ~$10K. T-8 was $40.7K/8 months (understaffed).
[14]: G&A: T-8: ~$18.6K/8 months (office, admin, cable, auto, permits, legal/eviction). Stabilized at $15,000 ($101/unit); T-8 inflated by startup purchasing and elevated eviction activity. Legal/eviction budget of $6–$8K/year embedded.
[15]: Reserves: $250/unit. Built 1965, hotel-to-residential conversion. Receiver spent $143K on capital in 8 months. Major deferred items addressed; ongoing needs expected for vintage building. $250/unit is the floor.
[16]: Management: 4% of EGI. T-8 actual was ~5.3%. 4% is competitive for 149 units with third-party management. Applied to total EGI including RUBS.

Financing: Presented on a free-and-clear (all-cash) basis. Contact Marcus & Millichap Capital Corporation for current financing options.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.