Edgewater

Edgewater is a 258-unit apartment community in Bakersfield, California. It is being offered at a price of $25,800,000, which represents a price per unit of only $100,000/unit. This represents a significant discount to replacement cost. With current values at such a huge discount to cost, there won’t be any new apartment supply in this market for the foreseeable future.

The offering price represents a cap rate of 7.0% on a pro forma for the first full year of operations. If a buyer were to finance this acquisition with $17.6 million of debt at current rates between 5.0% and 5.5%, an investment in Edgewater could yield IRRs in excess of 18%. These returns are virtually impossible to find in other California markets.

Moran & Company invites you to come to Bakersfield to look at the property, the rental market and the economy to see if you see what we see...opportunity!