Two small single-tenant buildings on California Avenue show why net lease investors pay close to $1,000 per square foot in Bakersfield.
Two California Ave net lease deals in Bakersfield show why small single-tenant buildings can trade near $1,000 per square foot. A new 4,750 SF 7-Eleven at 1629 California Ave sold for $4.7 million, announced in April 2025, about $989 per SF. The 4,680 SF Accelerated Urgent Care building at 4040 California Ave was marketed in 2025 at $5.3 million; no sale has been publicly reported.
Key takeaways
- The listing brokerage announced the $4.7 million sale of a new 7-Eleven gas station and convenience store at 1629 California Ave on April 10, 2025.
- At 4,750 SF, the price works out to about $989 per SF, more than four times the $218 per SF that regional brokerage reports showed for the Bakersfield retail average in Q2 2025.
- The 4,680 SF Accelerated Urgent Care building at 4040 California Ave was marketed at $5.3 million, a 6.68% cap rate on $354,125 of net operating income, per the listing broker’s offering memorandum. A sale price has not been publicly reported.
- The urgent care lease runs to July 31, 2035 with 3% annual increases. The 7-Eleven has a new 15-year absolute NNN lease with 10% increases every five years.
- Bakersfield’s average retail cap rate was 6.80% in Q2 2026 and retail vacancy was 5.20%, according to regional brokerage data.
Deal at a glance
| Item | Detail |
|---|---|
| Deals | Two single-tenant net lease properties on California Avenue, Bakersfield |
| 7-Eleven property | 1629 California Ave (at H St), 93304; 4,750 SF on 1.07 acres; built 2025 |
| 7-Eleven price | $4.7 million (about $989 per SF); sale announced April 10, 2025 |
| 7-Eleven parties | Seller: a Bakersfield-based private investor. Buyer: a Northern California-based private investor |
| 7-Eleven lease | New 15-year absolute NNN, 7-Eleven, Inc. corporate guaranty, 10% increases every 5 years, four 5-year options |
| Urgent care property | 4040 California Ave, 93309; 4,680 SF on about 0.84 acres; built 2000, retrofitted 2020 |
| Urgent care pricing | Marketed at $5.3 million (6.68% cap rate); no sale reported |
| Urgent care lease | Accelerated Urgent Care; absolute NNN except property insurance; Aug. 1, 2020 to July 31, 2035; 3% annual increases (per offering memorandum) |
What changed hands in the two California Ave net lease deals?
The 7-Eleven sold; the urgent care building was put up for sale. The listing brokerage announced the $4.7 million sale of a 7-Eleven gas station and convenience store at 1629 California Ave, which it placed in the downtown market of Bakersfield. The 4,750 SF building on 1.07 acres was built in 2025 and had 15 years remaining on a corporate-guaranteed absolute triple net lease. The brokerage’s capital markets team represented the seller, a Bakersfield-based private investor. The buyer was a Northern California-based private investor.
“This asset garnered strong investor interest due to the new construction, long-term/zero landlord responsibility lease to 7-Eleven, an investment grade tenant and leader in the gas and convenience store space,” the listing broker said in the release.
Farther west on the same corridor, the building leased to Accelerated Urgent Care at 4040 California Ave was marketed by a healthcare-focused brokerage at $5.3 million. No sale, buyer or final price has been publicly announced.
What is the 7-Eleven deal at 1629 California Ave?
It is a new store on a signalized hard corner, sold with a long corporate lease. The brokerage listing says the store sits at California Avenue and H Street, with a combined 50,500 vehicles passing daily, and cites 154,000 vehicles a day on nearby Highway 99. The listing describes the site as adjacent to downtown, near the arena, hospital and theaters.
The lease is the product. The listing marketed a new 15-year lease with four five-year renewal options, 10% rent increases every five years and a corporate guaranty from 7-Eleven, Inc. It called this a “zero landlord responsibility” lease. Under an absolute NNN lease, the tenant carries taxes, insurance and maintenance, typically including the roof and structure, so the owner collects rent with almost no management. Our guide to single-tenant net lease investing covers the structure.
A local owner selling a newly completed store to an investor from another region is a common net lease pattern. The developer captures the value created by signing a credit tenant. The buyer gets a new building with a long lease and little capital risk in the early years.
What is the urgent care building at 4040 California Ave?
It is a 4,680 SF clinic building leased to a physician-owned operator. Accelerated Urgent Care lists seven Bakersfield clinics, including 4040 California Ave, with most open 8 a.m. to 8:30 p.m. daily. The offering memorandum describes the company as a physician-owned practice whose owners are former Bakersfield emergency room doctors.
The building dates to 2000 and received what the memorandum calls an extensive retrofit in 2020 for the clinic. It sits on 36,563 SF of land, about 0.84 acres, near Kaiser Permanente’s Discovery Plaza medical office and big-box retailers such as Hobby Lobby, Ross and Burlington.
According to the memorandum, the lease began Aug. 1, 2020 and runs to July 31, 2035. It is absolute NNN except that the landlord pays property insurance, and it carries 3% annual increases plus a corporate and personal guarantee. At the $5.3 million asking price, $354,125 of net operating income produced a 6.68% cap rate, or about $1,132 per SF.
The listing brokerage, based in Kentfield, California, specializes in healthcare property dispositions nationwide. Hiring a healthcare-focused broker for a single Bakersfield clinic suggests the seller was marketing to medical net lease buyers well beyond Kern County.
Why do small net lease buildings sell near $1,000 per square foot?
Because net lease buyers price income, not bricks. Value equals net operating income divided by the cap rate, so price per square foot is really a function of rent per square foot. Our guide to cap rates explains the formula.
The urgent care’s $354,125 of income on 4,680 SF is about $75.67 per SF per year. A regional brokerage report put Bakersfield’s average NNN retail asking rent at $20.26 per SF per year in Q2 2026, so the clinic pays roughly 3.7 times the market average. Capitalize that rent at 6.68% and the result is more than $1,100 per SF.
Why would a tenant pay that much? The rent covers more than the building. Both sites are small structures on big lots. The urgent care building covers about 12.8% of its land and the 7-Eleven about 10.2%. The tenant is paying for parking, visibility, access and, at a fuel station, room for pumps and vehicle circulation. Rent set after a major retrofit, like the clinic’s 2020 build-out, often reflects the cost of that work too.
| Property | Size | Price or asking | Per SF | Lease |
|---|---|---|---|---|
| 7-Eleven, 1629 California Ave | 4,750 SF on 1.07 ac | $4.7M sale (announced April 2025) | About $989 | New 15-yr absolute NNN; 10% bumps every 5 yrs |
| Accelerated Urgent Care, 4040 California Ave | 4,680 SF on 0.84 ac | $5.3M asking at 6.68% cap; no sale reported | About $1,132 (asking) | Absolute NNN except insurance; 3% annual bumps; to July 2035 |
| AutoZone, 1125 Olive Dr | 8,302 SF | $2.64M sale (Aug. 2026) | About $318 | 15-yr NNN; 10% bumps every 5 yrs |
| Bakersfield retail average | All retail | Regional brokerage reports: $218 per SF (Q2 2025); $236 per SF (Q2 2026) | n/a | Cap rate 6.90% (Q2 2025); 6.80% (Q2 2026) |
Sources: brokerage press release and listing for the 7-Eleven; brokerage offering memorandum for the urgent care building; Connect CRE (Aug. 4, 2026); regional brokerage Q2 2026 Bakersfield Retail Market Overview. Per-SF figures are our calculations. For the AutoZone deal, see our Bakersfield AutoZone sale article.
How do fixed bumps compare with annual increases?
Rent growth matters as much as the starting yield. At 3% a year, the urgent care rent rises about 34% over 10 years. At 10% every five years, the 7-Eleven rent rises 21% over the same span, roughly 1.9% a year compounded. Our guide to rent escalations compares fixed bumps and CPI adjustments.
Buyers typically accept a lower starting cap rate for an investment-grade tenant like 7-Eleven. They ask for a higher rate, or stronger rent growth, from a regional operator backed by a corporate and personal guarantee. The 7-Eleven’s cap rate was not disclosed.
Where do 1031 and out-of-area buyers fit?
They are a natural fit for net lease buildings, and both confirmed sales here went to buyers from outside Kern County. The 7-Eleven went to a Northern California investor. The AutoZone on Olive Drive went to a Los Angeles-based investor, Connect CRE reported. The 7-Eleven announcement did not say whether the buyer used a 1031 exchange.
The IRS says real properties “generally are of like-kind, regardless of whether they’re improved or unimproved.” An investor selling an apartment building or land elsewhere in California can therefore roll into a Bakersfield store or clinic with a long lease and little management. Our 1031 exchange guide explains the timelines.
Taxes may also help. The listing broker said in April 2025 that bonus depreciation was driving investor interest in gas and convenience properties, because fee-simple owners can take larger deductions in early years. Federal law has since moved in that direction. The IRS says the 2025 budget law restored 100% bonus depreciation for qualifying property acquired after Jan. 19, 2025. See our guide to the law’s real estate changes.
What does it mean for Bakersfield retail and medical real estate?
It shows investors paying for lease quality in a tightening market. “Bakersfield’s retail market continued to strengthen through Q2 2026, with vacancy gradually declining as leasing activity improved following an extended period of softer demand,” a regional brokerage report said. Vacancy was 5.20% in Q2 2026, down from 5.54% a year earlier, and 12-month net absorption was 344,991 SF.
The same report said leasing “has remained concentrated among smaller-format users, including fitness operators, discount retailers, and healthcare providers.” The urgent care listing shows the investment side of that trend: a medical user in a retrofitted commercial building, on a long lease, marketed to net lease buyers like any other credit retail asset.
The averages hide the spread. The report’s average sale price was $236 per SF in Q2 2026, and its average retail cap rate was 6.80%. Small single-tenant buildings with long leases trade at several times the average per-SF price because buyers pay for the lease, while older multitenant centers pull the averages down.
What happens next on California Avenue?
The 7-Eleven lease runs into 2040 before any options, and the urgent care term at 4040 California Ave, per the offering memorandum, runs to July 2035. For owners of similar small buildings, the lesson is that a signed long-term lease, not the building alone, drives the exit price. New pad development with national or strong regional tenants should keep feeding the 1031 and private-investor market in Bakersfield.
Brokerages typically publish Q3 reports in mid-October. Those will show whether retail cap rates kept compressing after the 6.80% Q2 reading.
Frequently asked questions
How much did the 7-Eleven at 1629 California Ave in Bakersfield sell for?
$4.7 million, according to the listing brokerage, which announced the sale on April 10, 2025. The 4,750 SF building on 1.07 acres was new, so the price comes to about $989 per square foot. It carried 15 years of remaining term on an absolute NNN lease.
Who bought and sold the 7-Eleven on California Avenue?
The announcement described the seller as a Bakersfield-based private investor and the buyer as a Northern California-based private investor. It did not name either party or say whether the buyer used a 1031 exchange.
What is at 4040 California Ave in Bakersfield?
A 4,680 SF building leased to Accelerated Urgent Care, one of the company’s seven Bakersfield clinics. It was built in 2000, retrofitted in 2020 and sits on about 0.84 acres. A healthcare-focused brokerage marketed it at $5.3 million, a 6.68% cap rate. No sale or price has been publicly reported.
Why do small net lease buildings in Bakersfield sell for nearly $1,000 per square foot?
Buyers value the rent stream rather than the structure. Price equals net operating income divided by the cap rate, and tenants on large pad sites pay high rents for parking, visibility and, at fuel stations, pump islands. The urgent care building’s rent of about $75.67 per SF a year is roughly 3.7 times the local retail average.
What is an absolute NNN lease?
It is a lease in which the tenant pays property taxes, insurance and all maintenance, usually including the roof and structure. The landlord collects rent with almost no expense. The 7-Eleven has an absolute NNN lease, and the urgent care lease is absolute NNN except that the landlord pays property insurance.
What are retail cap rates in Bakersfield?
Regional brokerage reports put the average at 6.80% in Q2 2026, down from 6.90% a year earlier, with an average sale price of $236 per SF. Single-tenant buildings with long leases can trade at different yields, depending on tenant credit, lease term and rent increases.
Thinking about buying, selling or leasing a net lease or medical property in Bakersfield? Call Kern CRE at 661-885-6949 or contact us. Get Kern County CRE news monthly: subscribe to the Kern CRE report.
Sources
- 7-Eleven Property in Bakersfield, CA Sells for $4.7 Million, SRS Real Estate Partners, April 10, 2025.
- Bakersfield, CA – 7-Eleven (listing, sold), SRS Real Estate Partners.
- Accelerated Urgent Care, 4040 California Ave, Bakersfield, CA 93309 (offering memorandum), Acuity Private Capital, 2025 (undated).
- Urgent Care in Bakersfield, CA, Accelerated Urgent Care.
- Acuity Private Capital home page, Acuity Private Capital.
- Triple-Net AutoZone Sells to Private Investor from LA, Connect CRE, Aug. 4, 2026.
- Q2 2026 Bakersfield, CA Retail Market Overview, Lee & Associates, July 2026.
- Like-kind exchanges: real estate tax tips, Internal Revenue Service, reviewed May 1, 2026.
- One, Big, Beautiful Bill provisions, Internal Revenue Service, updated Oct. 2, 2026.
About this article
Kern CRE prepared this article with help from AI research and writing tools. An editor reviewed the draft, checked its facts against the sources linked above and edited it for accuracy and clarity. Details come from public records and the sources cited; unless stated, Kern CRE and ASU Commercial were not involved in the transaction or project.