| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 67th | Poor |
| Demographics | 17th | Poor |
| Amenities | 59th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38238 11th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1985 |
| Units | 36 |
| Transaction Date | 2016-05-19 |
| Transaction Price | $2,550,000 |
| Buyer | PRESIDENTIAL CALIFORNIA FINANCIAL FUNDIN |
| Seller | MOUNTAIN QUAIL PROPERTIES INC |
38238 11th St E Palmdale Multifamily Investment
This 36-unit property built in 1985 operates in a high-density rental market with 88.3% rental occupancy, ranking in the top 1% nationally. Commercial real estate analysis from WDSuite indicates strong renter demand fundamentals despite income constraints in the immediate neighborhood.
The property sits within an Urban Core neighborhood that ranks 1,241st among 1,491 metro neighborhoods, earning a C- rating. The area demonstrates exceptional rental density with 88.3% of housing units occupied by renters, placing it in the top 1% nationally and indicating strong multifamily demand fundamentals.
Built in 1985, this property aligns with the neighborhood's average construction year of 1970, positioning it among newer inventory that may require less immediate capital expenditure compared to older building stock. The 690-square-foot average unit size targets workforce housing in a market where median contract rents reach $1,137.
Demographics within a 3-mile radius show 68,826 residents with a median household income of $60,442, though the immediate neighborhood reports lower income levels at $36,722. Projections through 2028 anticipate household growth of 28.6% and median income increases to $89,987, suggesting improving tenant profiles. The area maintains 91.6% occupancy rates, ranking in the middle tier among metro neighborhoods but demonstrating stability.
Amenity access varies significantly, with strong grocery store density at 3.46 per square mile (92nd percentile nationally) and adequate childcare facilities, but limited pharmacy and cafe options. The rent-to-income ratio of 0.37 indicates affordability pressure that may affect tenant retention and lease management strategies.
The neighborhood faces safety challenges that require consideration in investment planning. Property crime rates of 1,037 incidents per 100,000 residents rank 1,122nd among 1,491 metro neighborhoods, placing it in the 22nd percentile nationally. Violent crime rates of 280 incidents per 100,000 residents rank similarly at 1,259th metro-wide, in the 16th percentile nationally.
Recent trends show modest improvement, with violent crime declining 17.9% year-over-year while property crime increased 2.1%. These mixed signals suggest ongoing monitoring of local conditions will be important for tenant retention and property management strategies.
The Palmdale area benefits from proximity to major aerospace and defense employers, providing workforce housing opportunities for a stable employment base.
- Lockheed Martin Aeronautics Co. — aerospace & defense (2.3 miles)
- Waste Management - Palmdale — waste services (2.4 miles)
- Amerisourcebergen — pharmaceutical distribution (28.0 miles)
- Boston Scientific Neuromodulation — medical devices (28.3 miles)
This 36-unit property offers exposure to exceptional rental market fundamentals, with the neighborhood's 88.3% rental occupancy ranking in the top 1% nationally according to CRE market data from WDSuite. The 1985 construction year positions the asset among newer neighborhood inventory, potentially reducing near-term capital expenditure needs while demographic projections show household growth of 28.6% through 2028.
Income growth projections from $60,442 to $89,987 median household income suggest improving tenant profiles, though current affordability pressures with a 0.37 rent-to-income ratio require careful lease management. Proximity to Lockheed Martin and other aerospace employers provides workforce housing demand, while the high rental density indicates limited ownership competition.
- Exceptional rental market density (88.3% rental occupancy, top 1% nationally)
- Strong demographic growth trajectory with 28.6% household increase projected
- Proximity to major aerospace employers supporting workforce housing demand
- 1985 vintage aligns with neighborhood average, reducing immediate capital needs
- Risk: Current affordability pressure and crime rates require active management