Real estate private equity firm GTIS Partners has acquired 153 acres in the Southwest submarket in Bakersfield, California, from Lehman Brothers Holdings in a joint venture with Global Investment and Development.
“We believe in the fundamentals of Bakersfield’s local economy which continues to add jobs throughout the MSA, most notably in agriculture and energy related fields, and strongly believe that this site is well positioned to benefit from these attractive employment demand drivers,” says Theodore Karatz, vice president of GTIS Partners.
“The Bakersfield housing market has strengthened considerably over the past 24 months and we see a path for upward growth in new home permits over the foreseeable future,” says Aaron Rivani, managing member of Global Investment and Development.
The 153-acre site is fully approved for the development of 564 single family residential lots along with a 5.6 acre central park amenity. The lot and housing mix will be attractive to both first time purchasers and move-up buyers given its lot sizes which range from 6,050 to 8,500sf and expected average base home prices in the high USD200,000s.
Bakersfield, the ninth-largest city in California, is located close to the southern end of the San Joaquin Valley roughly halfway between Fresno and Los Angeles.
GTIS was represented in the transaction by Paul Rutter and Elisa Paster at Gilchrist & Rutter and the seller was represented by Andrew Kirsh and Michael Floryan at Sklar Kirsh.