Cedarvale Apartments
Workforce Housing · All-Cash · Bakersfield, CA · 2026
701 Planz Road
Bakersfield, California
A 40-unit workforce housing acquisition structured for immediate cash flow, operational stabilization, and capital preservation — with zero debt, zero rate exposure, and income from day one.
$5.6M
Purchase price
40
Units · 100% 2BR
6.5%
In-place cap rate
8.1%
Stabilized cap rate
$0
Debt · All-cash
Investment thesis
Three drivers
of opportunity.
01
Immediate cash flow
Existing tenants generate income from day one. No lease-up, no construction, no debt service. Every dollar of NOI flows directly to investors from close.
02
Operational upside
Current vacancy of 7.5% exceeds market norms — a known condition priced into acquisition. Stabilization through improved management represents the primary value creation lever.
03
Defensive capital positioning
All-cash acquisition removes all exposure to interest rate volatility, refinancing risk, and lender covenants. The most common cause of real estate distress is debt — this deal has none.
04
Necessity-driven demand
Workforce housing in Bakersfield is structural, not cyclical. Agriculture, logistics, healthcare, and public services create consistent, non-discretionary rental demand regardless of economic conditions.
05
Conservative underwriting
Returns are achievable at current rent levels — no aggressive rent growth, no cap rate compression required. Modest 1–2% annual escalation is modelled as upside, not base case.
06
Sponsor alignment
Astamar co-invests alongside investors in this offering. Our returns are driven by the same asset-level cash flow as yours. We make our promote only after you receive your preferred return.
The asset
Cedarvale Apartments
Physical asset overview
8.1%
Stabilized cap rate
$363K
In-place NOI
Location · Bakersfield, CA
Property specifications
| Address | 701 Planz Road, Bakersfield CA |
| Asset type | Workforce multifamily |
| Year built | 1983 |
| Total units | 40 (100% 2BR/1BA) |
| Buildings | 10 two-story garden-style |
| Avg unit size | ~1,000 sqft |
| Lot size | 84,070 sqft (2 parcels) |
| Total building area | 36,640 sqft |
| Parking | 73 spaces (37 covered) |
| Zoning | R-3 |
| Security | Gated community |
| Acquisition structure | All-cash · No debt |
Comparable sales · Bakersfield
| ADDRESS | UNITS | PRICE | CAP |
| 420–426 Real Road | 64 | $9.5M | 6.86% |
| 1906 18th Street | 35 | $4.25M | 7.01% |
| Cedarvale (ours) | 40 | $5.6M | 8.18% |
Cedarvale enters at a higher cap rate than comparable sales — structural yield advantage at acquisition.
Location highlights
→Adjacent to South High School · corner of Planz & S. Chester Ave
→Highway 99 access 6.7 miles · Amtrak station 4.5 miles
→Bakersfield — 9th largest city in California · fastest-growing metro
→Rents 60–70% below coastal California — structural affordability advantage
Financial overview
Income & yield
at a glance.
Purchase price
$5.6M
$140,000 per unit
In-place NOI
$363K
6.5% cap rate · day one
Pro forma NOI
$458K
8.1% cap rate · stabilized
NOI upside
$94K
From vacancy stabilization
Income & expense summary
Gross income (I&E)$472,590
Gross income (rent roll)$566,604
Operating expenses$108,758
In-place NOI$363,832
Pro forma NOI$457,846
Annual debt service$0 — all-cash
Cash flow after debt$363,832 (100% retained)
Key metrics
GRM (2024)9.88×
Cap rate — in-place6.5%
Cap rate — stabilized8.1%
Current vacancy7.5% (target: 3–5%)
Avg rent in-place~$1,243/unit
Property taxes$54,753/yr
Cost per rentable sqft$152.84
Return scenarios
Three paths.
All generate income.
Bull case
12.5%
IRR · Vacancy to 3% · 3yr hold · 2% rent growth
Stabilized NOI$480K+
Cash-on-cash yr 1~6.5%
Cash-on-cash stabilized~8.5%
Exit cap rate6.5%
Exit value est.~$7.4M
Hold period3 years
Base case ★
10–11%
IRR · Vacancy to 4.5% · 4yr hold · 1.5% rent growth
Stabilized NOI$457K
Cash-on-cash yr 1~6.5%
Cash-on-cash stabilized~8.1%
Exit cap rate7.0%
Exit value est.~$6.5M
Hold period3–4 years
Bear case
7–8%
IRR · No vacancy improvement · 4yr hold · 0% growth
NOI (unchanged)$363K
Cash-on-cash~6.5%
Cash-on-cash stabilized~6.5%
Exit cap rate7.5%
Exit value est.~$4.8M
Hold period4 years
Bear case: even with zero improvement, all-cash structure generates positive cash-on-cash every year. Capital is preserved.
Interactive financial model
Stress-test
the numbers.
Adjust assumptions — all outputs update in real time
7.5%
1.5%
7.0%
4 yrs
NOI waterfall
IRR sensitivity — exit cap rate vs hold period
Bull (vac 3%)
Base (vac 4.5%)
Bear (vac 7.5%)
Annual cash-on-cash by year
Cash-on-cash return (%)
Cumulative distributions ($K)
Investment terms
How the deal
is structured.
Purchase price
$5.6M
All-cash · No debt
Preferred return
8%
Per annum to LP first
GP carry
20%
80/20 GP split above pref
Fee structure
Acquisition fee1.5% of purchase price
Acquisition fee amount$84,000 (one-time at close)
Annual management fee2% of gross revenue
Management fee coversProperty mgmt · leasing · reporting
Disposition feeNone
Promote triggerAfter 8% pref paid in full
Return structure
Preferred return8% p.a. to LP
GP promote20% above preferred
LP share above pref80%
Distribution frequencyQuarterly from operations
Target hold3–4 years
Target IRR10–12.5%
"The management fee covers property operations, leasing execution, tenant management, and investor reporting. The GP promote is entirely separate — it only triggers after you have received your full 8% preferred return. They serve different purposes."
ASTAMAR ASSET MANAGEMENT
On alignment: Astamar co-invests alongside you in this offering. Our returns are generated by the same asset-level cash flow as yours. We have no incentive to chase fees at the expense of performance — our promote is meaningless without your preferred return first.
Rent roll · July 2025
Unit-by-unit
income detail.
Occupied units
37
of 40 total
Monthly gross
$47,217
In-place tenants
Annual gross
$566,604
Full rent roll
Avg rent/unit
$1,243
Per occupied unit
| Unit | Tenant | Rent | Status |
|---|---|---|---|
| 1 | Vacant | — | Vacant |
| 2 | Yanez/Ramiris | $1,295 | Occupied |
| 3 | Sonorman/Lopez | $1,165 | Occupied |
| 4 | Maria Castellanos | $1,165 | Occupied |
| 5 | Gerardo Acevedo | $1,165 | Occupied |
| 6 | Casa | $1,295 | Occupied |
| 7 | Carabontez/Verdin | $1,295 | Occupied |
| 8 | Reza | $1,295 | Occupied |
| 9 | Ben King | $1,282 | Occupied |
| 10 | Manager | — | Mgr unit |
| 11 | Cabrera | $1,210 | Occupied |
| 12 | Mary Cobbins | $1,282 | Occupied |
| 13 | Yosha Williams | $1,282 | Occupied |
| 14 | Barboza/Mata | $1,243 | Occupied |
| 15 | Jacquez/Munetun | $1,295 | Occupied |
| 16 | Bryan Worsham | $1,282 | Occupied |
| 17 | Devin Ne Cord | $1,295 | Occupied |
| 18 | Veronica Martinez | $1,295 | Occupied |
| 19 | Valle | $1,293 | Occupied |
| 20 | Cheryl Gaddis | $1,165 | Occupied |
| Unit | Tenant | Rent | Status |
|---|---|---|---|
| 21 | Zaragoza | $1,295 | Occupied |
| 22 | Sanchez | $1,295 | Occupied |
| 23 | Torrez | $1,295 | Occupied |
| 24 | Sarceno | $1,295 | Occupied |
| 25 | Marissa Elazondo | $1,282 | Occupied |
| 26 | Luna | $1,295 | Occupied |
| 27 | Vasquez | $1,295 | Occupied |
| 28 | Cayatano | $1,295 | Occupied |
| 29 | Peterson | $1,295 | Occupied |
| 30 | Coronell | $1,295 | Occupied |
| 31 | Evict | $0 | Eviction |
| 32 | Felecia Dean | $1,243 | Occupied |
| 33 | Garcia | $1,295 | Occupied |
| 34 | Gallindo | $1,295 | Occupied |
| 35 | Munnings | $1,165 | Occupied |
| 36 | Carmen Lequin | $1,295 | Occupied |
| 37 | Medina | $1,295 | Occupied |
| 38 | Michele Jaurez | $1,165 | Occupied |
| 39 | Dodd | $1,243 | Occupied |
| 40 | Vasquez | $1,144 | Occupied |
Risk & due diligence
Known risks.
Disclosed upfront.
Key risks
Elevated vacancy
Current 7.5% vacancy exceeds submarket norms. No guarantee of achieving full stabilization within the projected timeline — this is the primary execution risk.
Limited rent growth
Bakersfield workforce housing exhibits 1–2% annual rent growth historically. Projections assume no material acceleration beyond this range.
Operating expense variability
Insurance, property taxes, and maintenance may increase above underwritten levels, compressing NOI margins in certain periods.
Management execution
Achieving vacancy reduction requires consistent leasing and tenant retention execution. Delays will affect near-term distribution timing.
Structural protections
Zero debt — strongest protection
No debt service means no forced disposition events in any adverse scenario. The all-cash structure is the single most important risk mitigant in the deal.
In-place income from day one
37 paying tenants generate cash flow regardless of stabilization timeline. Investors receive distributions even in the bear case.
Necessity housing — recession resistant
Workforce housing demand in Bakersfield does not contract meaningfully in downturns. Tenants in essential industries are not discretionary renters.
Conservative underwriting
Returns are modelled at current rent levels with no cap rate compression. Stress tested to zero rent growth, sustained elevated vacancy, and 15–20% expense increase.
Astamar Asset Management
Ready to invest
with us?
This offering is available to qualified investors. Contact Astamar for full underwriting materials,
legal structure, and subscription documents.