Investment Overview

Marcus & Millichap is proud to present Sunrise Apartments, an unpriced offering of a 240-unit affordable housing community located in Bakersfield, California. Sunrise Apartments represents a rare, large-scale preservation and re-syndication opportunity for experienced affordable housing investors and developers seeking to extend long-term affordability through the Low-Income Housing Tax Credit (LIHTC) program. Originally redeveloped using tax-exempt bonds and 4% LIHTCs, Sunrise Apartments is encumbered by a California Tax Credit Allocation Committee (TCAC) regulatory agreement requiring the property to operate as a Qualified Low-Income Housing Project. Under the existing regulatory framework, the property operates under the 40-60 test, with 100% of the units restricted to households earning no more than 60% of Area Median Income (AMI). Rents are limited in accordance with Section 42 of the Internal Revenue Code and are subject to ongoing TCAC compliance monitoring. Sunrise Apartments consists of 240 residential units, including eight two-bedroom units and 232 three-bedroom, two-bath units, resulting in a highly family-oriented unit mix that is increasingly scarce in California’s affordable housing landscape. The property’s scale and configuration support consistent demand from income-qualified households and align with long-term workforce and family housing needs in the Bakersfield market. The asset offers a clear and compelling path for LIHTC re-syndication, allowing a new owner to extend affordability, address deferred capital needs, and fund capital improvements through new tax credit equity. A re-syndication would support the modernization of building systems, replenishment of reserves, and enhancement of long-term operational sustainability while preserving a critical affordable housing resource in Kern County. Given the property’s existing regulatory structure, size, and 100% affordable designation, Sunrise Apartments is well positioned for a 4% bond re-syndication and may support deeper income targeting where feasible. Bakersfield remains one of California’s most supply-constrained affordable housing markets, particularly for households earning below 60% of AMI. As the economic center of Kern County, the city benefits from a diverse employment base including healthcare, logistics, agriculture, energy, education, and public sector employment. Continued population growth, rising housing costs, and limited new affordable supply have reinforced the importance of preserving existing communities such as Sunrise Apartments. Sunrise Apartments offers investors the opportunity to acquire a large-scale, 100% affordable housing asset with regulatory clarity, durable demand, and a defined path to long-term affordability preservation through LIHTC re-syndication.