| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 72nd | Fair |
| Demographics | 10th | Poor |
| Amenities | 30th | Poor |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38032 5th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1987 |
| Units | 78 |
| Transaction Date | 2016-12-21 |
| Transaction Price | $6,900,000 |
| Buyer | GROUP XIII PROPERTIES LP |
| Seller | PALMDALE EQUITIES LLC |
38032 5th St E Palmdale Multifamily Investment
This 78-unit property benefits from strong renter demand in a market where 70.7% of households rent, ranking in the 97th percentile nationally according to WDSuite's CRE market data.
This inner suburb neighborhood demonstrates solid fundamentals for multifamily investors, with neighborhood-level occupancy at 93.3% and above-metro median performance among 1,441 Los Angeles-Long Beach-Glendale metro neighborhoods. The area ranks in the 72nd percentile nationally for housing metrics, supported by a substantial renter base that comprises over 70% of local households.
Demographics within a 3-mile radius show a population of approximately 58,500 residents with household growth of 5.0% over the past five years. Projections indicate continued household formation, with an expected 29.6% increase in total households through 2028, expanding the potential tenant base. The current median household income of $59,798 is projected to grow to $90,598 by 2028, supporting rent growth potential as the forecast median rent increases to $2,169.
Built in 1987, the property is newer than the neighborhood average construction year of 1974, positioning it competitively within the local housing stock while minimizing near-term capital expenditure needs. The area provides adequate grocery access with 2.16 stores per square mile, ranking in the 84th percentile nationally, though other amenities remain limited with minimal cafe, childcare, and park density.
The neighborhood's safety profile presents mixed conditions that investors should monitor closely. Crime metrics place the area in the 27th percentile nationally, indicating higher crime rates compared to most U.S. neighborhoods. Property crime rates of approximately 1,575 incidents per 100,000 residents rank 1,258th among 1,441 metro neighborhoods, while violent crime rates of 429 per 100,000 residents place the area toward the lower end of regional performance.
Recent trends show property crime increased 41.1% year-over-year, though violent crime decreased 9.3% over the same period. These mixed signals suggest the importance of ongoing security considerations and potential impacts on tenant retention and property insurance costs.
The employment base centers on aerospace and waste management operations, providing workforce housing demand from nearby corporate facilities.
- Waste Management - Palmdale — waste management services (1.7 miles)
- Lockheed Martin Aeronautics Co. — defense & aerospace (2.5 miles)
- Amerisourcebergen — pharmaceutical distribution (27.3 miles)
- Boston Scientific Neuromodulation — medical devices (27.6 miles)
This 78-unit property capitalizes on strong rental market fundamentals in Palmdale, where 70.7% of households rent — ranking in the 97th percentile nationally. The neighborhood maintains 93.3% occupancy with projected household growth of 29.6% through 2028, expanding the tenant base significantly. Built in 1987, the asset is newer than area averages, reducing immediate capital needs while benefiting from anticipated rent growth as median household incomes rise from $59,798 to a projected $90,598.
Demographic projections within a 3-mile radius indicate substantial income growth potential, with CRE market data from WDSuite showing forecast median rents increasing 54.5% to $2,169 by 2028. The property's location near major employers like Lockheed Martin provides workforce housing demand, though investors should account for the area's crime profile and limited amenity density when evaluating long-term tenant appeal.
- Strong rental demand with 70.7% of households renting, 97th percentile nationally
- Projected 29.6% household growth through 2028 expanding tenant base
- Newer vintage (1987) versus neighborhood average reduces near-term capex
- Proximity to aerospace employers supports workforce housing demand
- Risk consideration: Higher crime rates may impact tenant retention and insurance costs