| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 67th | Poor |
| Demographics | 17th | Poor |
| Amenities | 59th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38118 11th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1987 |
| Units | 32 |
| Transaction Date | 2018-09-25 |
| Transaction Price | $2,840,000 |
| Buyer | GROUP I EL MONTE PROPERTIES LTD |
| Seller | ENTERPRISES INVESTMENT GROUP LLC |
38118 11th St E, Palmdale Multifamily Investment
Renter demand appears durable with occupancy near the national midpoint and trending up modestly in the surrounding neighborhood, according to WDSuite’s CRE market data. The submarket’s high renter concentration suggests a deep tenant base, supporting stable leasing for a 32‑unit asset.
Located in Palmdale within the Los Angeles-Long Beach-Glendale metro, the neighborhood shows steady renter demand: occupancy is around the national median and has improved over the last five years, per WDSuite. The share of housing units that are renter-occupied is among the highest nationally, indicating a sizable tenant pool that can help support leasing stability for multifamily assets.
Within a 3‑mile radius, households have grown while the population is projected to edge lower, pointing to smaller household sizes and a larger count of households over time — dynamics that generally expand the renter pool and support occupancy. Median incomes have risen meaningfully in recent years, and forecasts indicate further income gains, which can underpin rent growth and renewal performance if managed with careful lease thresholds.
Daily convenience is a relative strength: grocery access and park coverage rank in the low‑90s percentiles nationally, while restaurant density is above the national median, based on WDSuite data. By contrast, cafes and pharmacies are comparatively sparse. For residents, this mix supports routine needs and recreation, with fewer niche or boutique options nearby.
Home values in the neighborhood are elevated relative to incomes (high national percentile for value‑to‑income), which tends to sustain reliance on rental housing and can support pricing power for well‑positioned properties. At the same time, rent‑to‑income levels indicate affordability pressure for some renters, calling for attentive lease management to balance occupancy and collections.
Compared to other neighborhoods in the Los Angeles metro (1,441 neighborhoods total), overall neighborhood performance sits below the metro median, but key renter-demand fundamentals — high renter concentration and mid‑cycle occupancy — are competitive among local options when underwriting workforce‑oriented product.
Neighborhood safety metrics sit below national medians based on WDSuite benchmarks, and the area ranks below the metro median among 1,441 Los Angeles‑area neighborhoods. This suggests investors should underwrite to prudent security, lighting, and on‑site management practices.
On the positive side, recent year trends show an improvement in violent‑offense rates (declining year over year), which is a constructive directional signal. Still, property offenses remain an ongoing management consideration. Framing risk and mitigation in operations — rather than assuming block‑level uniformity — is the prudent approach.
Nearby employment anchors span aerospace/defense, medical devices, pharmaceuticals distribution, telecom, and essential services — a mix that supports renter demand through commute convenience and workforce stability. Specifically, Waste Management, Lockheed Martin Aeronautics, AmerisourceBergen, Boston Scientific Neuromodulation, and Charter Communications are the most proximate drivers.
- Waste Management - Palmdale — waste services (2.36 miles)
- Lockheed Martin Aeronautics Co. — aerospace & defense (2.43 miles)
- AmerisourceBergen — pharmaceuticals distribution (27.95 miles)
- Boston Scientific Neuromodulation — medical devices (28.28 miles)
- Charter Communications — telecom & cable (29.19 miles)
Built in 1987, the asset is relatively newer than much of the surrounding stock, offering competitive positioning versus older properties while leaving room for targeted modernization to enhance rentability. Renter demand fundamentals are solid: the neighborhood’s renter-occupied share is very high, occupancy is around the national midpoint with recent improvement, and 3‑mile household growth points to a larger tenant base over time — all supportive of leasing stability.
Elevated ownership costs in the neighborhood tend to reinforce reliance on rental housing, which can aid pricing power for well‑managed communities. At the same time, rent‑to‑income levels signal affordability pressure for parts of the renter base and safety metrics sit below metro medians, so investors should plan for disciplined lease management and active property operations, based on commercial real estate analysis from WDSuite.
- High renter concentration and mid‑cycle occupancy support a deep tenant base
- 1987 vintage offers relative competitiveness with value‑add modernization potential
- 3‑mile household growth and income gains underpin demand and renewal prospects
- Strong grocery and park access enhances livability for workforce renters
- Risks: affordability pressure and below‑median safety require attentive operations