Palm View Villas - 4023 O St
7 units now, 29 at build-out — in-place income paired with fully entitled, shovel-ready plans for 22
Marketing description
Palm View Villas is a value-add and development opportunity in central Bakersfield: seven income-producing apartment units conveying together with fully approved, shovel-ready plans (per seller) for 22 additional units — a clear path from 7 to 29 units on a single ±1.3-acre parcel.
The existing improvements consist of seven townhome-style apartments — all desirable 2-bedroom / 1.75-bath layouts with indoor laundry and private patios — across two well-maintained buildings that have received newer roofs, exterior color coat, and updated air conditioning. In-place rents average approximately $971 per unit, roughly 19% below comparable un-renovated product and about 33% below the 93301 two-bedroom average, giving a buyer immediate mark-to-market upside through turnover and a light renovation program — before any new construction.
The defining feature of the offering is its entitled expansion. Per the seller, the property conveys with City of Bakersfield–approved plans for 22 new units configured as four 2-story buildings (a 4-plex and three 6-plexes) on the currently vacant Jewett Avenue frontage, with the existing buildings retained on the O Street side — a dual-frontage through-lot with EV-ready parking. By inheriting an approved, shovel-ready program, a purchaser skips the longest-lead and least-certain phase of ground-up multifamily and can build while the existing units continue to carry the project. Stabilized, the 22-unit component is projected to generate approximately $289,674 in net operating income in addition to existing income, scaling the asset into a combined 29-unit community.
Multiple levers support cash-flow growth: renovating the existing units to market, self-managing to compress operating expenses, capturing ancillary income from parking and storage, and gaining margin by spreading fixed costs across 29 units. The asset enters a supply-constrained submarket where new apartment supply is scarce and City policy is steering higher-density development into the urban core — anchored by a deep, roughly 60% renter-majority base sitting atop more than 117,000 jobs within three miles, led by healthcare, education, and government employment.
Offered by Five Rivers Investment Group & Construction. Contact the brokers for additional information and to submit offers; complete due-diligence materials, including the entitlement package, are available upon execution of a confidentiality agreement.
Investment highlights
- 7 units today, 29 at build-out — conveys with fully approved, shovel-ready plans (per seller) for a 22-unit expansion, removing the longest-lead, highest-risk phase of ground-up development.
- In-place rents well below market — seven 2BR/1.75BA townhome units average ~$971/unit blended, ~19% under comparable un-renovated product (~$1,200) and ~33% under the 93301 two-bedroom average ($1,445); day-one mark-to-market upside on turnover.
- A documented, specific entitlement — the approved site plan lays out 22 units across four 2-story buildings (6 + 4 + 6 + 6) on the vacant Jewett Avenue frontage, existing buildings retained on O Street — a dual-frontage through-lot with EV-ready parking.
- Multiple paths to value — renovate the existing units, build the entitled 22, or both; the 22-unit component projects to ~$289,674 stabilized NOI, scaling the asset to a combined 29-unit community.
- Supply-constrained infill market with policy tailwinds — new apartment supply is scarce (regional construction skews to for-sale homes on the periphery), while the City's 2023–2031 Housing Element steers higher-density development into the urban core.
- Deep, stable renter base atop a major job center — ~60% of households within three miles rent, sitting on 117,000+ jobs within three miles led by recession-resistant healthcare, education, and government employment.
- Renovate to lift NOI on the existing units — a light cosmetic program (~$14K/unit) raises in-place NOI from ~$52,660 to ~$65,400; a full renovation (~$30K/unit) to ~$80,400 — a 24–53% NOI increase on the existing buildings, before any new construction.*Based on market comps, buyer to verify.
- Compress operating expenses as an owner-operator — self-managing captures the ~6% third-party management load and tightens controllable maintenance, lifting in-place cash flow without raising a single rent.
- Capture untapped ancillary income — covered/assigned parking (the site's carports and surplus paved area), storage, pet rent, and a standardized fee schedule add high-margin revenue a small in-place operation typically leaves on the table.
- Gain margin through scale at 29 units — spreading fixed costs (insurance, management, maintenance, administration) across 29 units on a single parcel widens operating margins versus running seven units standalone.
- Build while the existing units pay the carry — the seven in-place units keep producing through planning and construction, offsetting holding costs and improving project-level cash flow during the development phase. *Buyer to verify feasibility of this.
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