I checked out some properties in Bakersfield recently. My interest was not directed by a real estate firm, although the properties I saw, if they were for sale would be excellent is purchased correctly. The first property is the hotel where I stay when in Bakersfield. It is a Homewood Suite, a limited-service hotel that is part of the Hilton group of hotels. The manager of the hotel said that Homewood is mostly a midwestern and eastern chain and is now expanding into California. It caters to business and the college is just north of the property. Interestingly, it is also in an area of significant medical offices, in particular cosmetic surgery. I guess cosmetic surgery is is more cost effective in Bakersfield than over the hill in LA. This hotel is mostly full during the week and was even sold out one night when I tried to book a room.
The second is probably the premier neighborhood shopping center in Bakersfield. It is the Marketplace center in west Bakersfield. Located on Ming Avenue, it is near some of the most affluent sub-divisions in Bakersfield. It is just south of the college. Its anchors are Von's, Starbucks, Talbot's, Rite-Aid and an Edward's Cinemas and other national and local retailers. It is 299,000 square feet and 100% leased. It was developed by Castle & Cooke, which is part of Dole, the pineapple company. It was recently sold to Donahue Schriber, an Orange County owner and manager of institutional shopping centers. It was sold for $280 per square foot, a healthy price. Don't even want to think about a TIC acquisition and markup.