| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 72nd | Fair |
| Demographics | 10th | Poor |
| Amenities | 30th | Poor |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38260 5th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1988 |
| Units | 28 |
| Transaction Date | 1993-10-08 |
| Transaction Price | $575,000 |
| Buyer | RAHBAR FARSHID SAM |
| Seller | FIDELITY FEDERAL BANK FSB |
38260 5th St E, Palmdale — 28-Unit 1988 Multifamily
High renter-occupied concentration in the surrounding neighborhood points to a deep tenant base, according to WDSuite s CRE market data, while 1988 construction offers competitive positioning versus older local stock.
Situated in Palmdale s inner-suburban fabric of the Los Angeles metro, the property benefits from a neighborhood with a very high share of renter-occupied housing units (70.7%), indicating substantial depth for multifamily demand. Neighborhood occupancy registers in the low-90s, suggesting generally stable leasing conditions rather than a lease-up environment.
Everyday amenities skew toward necessity retail: grocery access is strong compared with many U.S. neighborhoods, while parks, pharmacies, cafes, and childcare are relatively sparse. Restaurant density is comparatively high, supporting daily convenience for residents. School ratings in the area trend on the lower side, which investors often underwrite with targeted retention strategies and community programming rather than relying on school-driven demand.
Against the Los Angeles metro, the neighborhood sits below the median on several quality-of-life metrics (overall neighborhood rank 1,395 among 1,441 metro neighborhoods). Even so, national comparisons show notable strengths for housing and grocery access (both above the national middle), while crime and education metrics lag, warranting prudent leasing and security planning.
Demographics aggregated within a 3-mile radius show recent gains in population and households, with forecasts indicating a modest pullback in population but continued household growth and smaller average household size. That mix typically supports multifamily absorption as more, smaller households enter the renter pool. Median contract rents in the 3-mile area have trended upward over the last cycle, reinforcing pricing power for well-maintained product, though asset-specific performance will depend on unit finishes and management.
Home values in the neighborhood are elevated relative to many U.S. areas, and the value-to-income relationship is high for the region. In practice, a high-cost ownership market tends to reinforce reliance on rental options, supporting tenant retention and leasing durability for competitively positioned multifamily assets.
Safety metrics for the neighborhood trend weaker than national averages. Within the Los Angeles metro, the area ranks in the lower tier for crime (1,276 out of 1,441 metro neighborhoods), indicating comparatively higher reported incidents than many peer neighborhoods.
Nationally, the neighborhood sits below the middle of the pack for safety (crime near the bottom quartile by percentile), with violent incidents benchmarking weaker than average. Recent trends are mixed: violent offense rates show improvement year over year, while property-related incidents have risen. Investors typically address this profile through practical measures such as lighting, access controls, and resident engagement, and by calibrating underwriting to reflect security needs rather than assuming block-level conditions.
Nearby employment anchors span aerospace, waste services, pharma distribution, medical devices, and telecom. This mix supports a broad renter base and commute convenience that can aid leasing stability for workforce-oriented multifamily.
- Waste Management Palmdale waste & environmental services (1.8 miles)
- Lockheed Martin Aeronautics Co. defense & aerospace (2.3 miles)
- AmerisourceBergen pharma distribution (27.4 miles)
- Boston Scientific Neuromodulation medical devices (27.7 miles)
- Charter Communications telecom (29.0 miles)
This 28-unit, 1988-vintage asset offers relative competitiveness versus older neighborhood stock (average vintage skewing to the 1970s), with potential to capture demand from a renter-heavy area. Household growth and a trend toward smaller household sizes within a 3-mile radius point to a larger tenant base over time, supporting occupancy stability when paired with effective operations. Elevated ownership costs locally also tend to sustain renter reliance on multifamily housing.
Based on CRE market data from WDSuite, the surrounding neighborhood shows stable occupancy and strong renter concentration, while rent levels in the broader 3-mile area have climbed over the last cycle. Returns will hinge on execution: targeted CapEx to refresh 1980s systems and interiors, calibrated leasing in light of neighborhood safety and school considerations, and positioning toward workforce renters tied to nearby employers.
- 1988 construction offers a competitive edge versus older local stock, with defined value-add and modernization pathways.
- High neighborhood renter-occupied share supports depth of tenant demand and leasing durability.
- Household growth and smaller household sizes within 3 miles expand the renter pool and support occupancy stability.
- Elevated ownership costs reinforce reliance on rental housing, aiding retention and pricing power for well-positioned assets.
- Risks: below-average school ratings and safety metrics require prudent underwriting, security investments, and hands-on management.