| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 72nd | Fair |
| Demographics | 10th | Poor |
| Amenities | 30th | Poor |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38240 5th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1986 |
| Units | 72 |
| Transaction Date | 2014-06-26 |
| Transaction Price | $1,714,500 |
| Buyer | MARTINEZ HORACIO |
| Seller | LESLIE SAM S |
38240 5th St E, Palmdale Multifamily Investment
Neighborhood occupancy trends sit above the metro median and a high renter concentration supports stable demand, according to WDSuite’s CRE market data. This positioning can help underpin cash flow durability in a workforce-driven submarket.
Situated in Palmdale’s inner-suburban fabric of the Los Angeles metro, the property benefits from a tenant base oriented toward renting. Approximately 71% of neighborhood housing units are renter-occupied, indicating depth for multifamily leasing and renewals. Neighborhood occupancy ranks above the metro median (984 out of 1,441), supporting potential stability through cycles based on CRE market data from WDSuite.
Daily-needs access is a relative strength. Grocery availability performs in the top quartile nationally (84th percentile), and restaurants are also a standout (95th percentile), which can aid resident convenience and retention. By contrast, cafés, parks, and pharmacies are thinly supplied locally, which may temper some lifestyle appeal versus higher-amenity Los Angeles neighborhoods.
School options in the area track below national norms (around the 15th percentile), which may factor into demand from family renters. Even so, the 3-mile radius shows a growing household base and modestly smaller average household sizes over time, expanding the pool of renters and supporting occupancy.
The asset’s 1986 vintage is newer than the area’s average construction year (1974). That positioning can enhance competitive appeal versus older stock, while still warranting targeted upgrades to interiors and building systems for rent lift and durability.
Safety indicators are mixed and should be underwritten with care. The neighborhood ranks 1,276 out of 1,441 within the Los Angeles metro for crime, indicating below-average safety relative to peers. Nationally, the area sits near the lower third by safety percentile, though recent data shows a year-over-year decline in violent incidents, suggesting some improvement alongside elevated property crime trends.
For investors, the takeaway is to budget for security-forward operations (lighting, access controls, and patrol coordination) and to factor safety perception into marketing and renewal strategies rather than assuming block-level outcomes.
Proximity to industrial and aerospace employers supports a steady workforce renter base and commute convenience for residents. Nearby employment nodes include waste services and aerospace manufacturing, with additional corporate offices within commuting range.
- Waste Management - Palmdale — waste services (1.8 miles)
- Lockheed Martin Aeronautics Co. — aerospace manufacturing (2.4 miles)
- AmerisourceBergen — pharmaceuticals distribution (27.4 miles)
- Boston Scientific Neuromodulation — medical devices (27.7 miles)
- Avery Dennison — materials & labeling (29.9 miles) — HQ
This 72-unit, 1986-vintage asset offers exposure to a renter-heavy neighborhood with occupancy running above the metro median, pointing to demand resilience. Newer-than-area-average vintage can be leveraged against older competitive stock, while targeted upgrades may capture rent premiums. According to CRE market data from WDSuite, local grocery and restaurant access ranks strongly nationwide, which can aid retention despite thinner café and park options.
Within a 3-mile radius, households are projected to increase as average household size trends modestly lower, expanding the renter pool even as population growth moderates. A high-cost ownership backdrop in Los Angeles County tends to reinforce reliance on rental housing, supporting occupancy and pricing power; however, rent-to-income levels indicate some affordability pressure, suggesting disciplined lease management is prudent.
- Above-metro-median neighborhood occupancy supports stability and renewal potential.
- 1986 vintage is competitively newer than local stock, with value-add and systems-refresh upside.
- Strong grocery and restaurant access bolsters livability and resident retention.
- 3-mile household growth and smaller household sizes expand the renter base over time.
- Risks: below-metro-average safety and affordability pressure require proactive operations and leasing strategy.