| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 67th | Poor |
| Demographics | 17th | Poor |
| Amenities | 59th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38263 12th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1986 |
| Units | 52 |
| Transaction Date | 2011-06-02 |
| Transaction Price | $1,121,300 |
| Buyer | ENNABE FINANCIAL LP |
| Seller | 12TH STREET PALMDALE PROPERTIES |
38263 12th St E Palmdale Multifamily Investment
This 52-unit property sits in a renter-dominant neighborhood with 88.3% rental occupancy and strong employment anchors nearby. Income growth trends support long-term rental demand according to CRE market data from WDSuite.
Built in 1986, this property represents a value-add opportunity in a neighborhood where the average construction year is 1970. The older vintage provides potential for capital improvements to enhance unit competitiveness and rental premiums.
The neighborhood demonstrates strong rental fundamentals with 88.3% of housing units occupied by renters, ranking in the top percentile nationally among renter-concentrated areas. This renter dominance supports consistent tenant demand and reduces competition from ownership alternatives. Median contract rent of $1,137 reflects affordable housing options, though rent-to-income ratios indicate affordability pressure that requires careful lease management consideration.
Demographics within a 3-mile radius show a population of approximately 69,000 with steady household growth of 7% over five years. The area features solid amenity access including 3.46 grocery stores per square mile, ranking above the 90th percentile nationally, and strong childcare density supporting family-oriented renters. However, limited cafe and pharmacy access may impact lifestyle amenities for certain tenant segments.
Neighborhood occupancy rates of 91.6% align with metro averages, indicating stable absorption despite ranking in the middle tier among Los Angeles area neighborhoods. The combination of affordable rents and employment proximity provides a foundation for occupancy stability, though investors should monitor renewal rates given income constraints in the local market.
Property crime rates in the neighborhood rank in the lower third among Los Angeles metro neighborhoods, with an estimated rate of 1,037 incidents per 100,000 residents. While this indicates elevated property crime levels compared to regional averages, violent crime trends show improvement with a 17.9% decrease over the past year.
The neighborhood's overall crime ranking places it below metro median levels, requiring investors to factor security considerations into property management strategies. Enhanced lighting, surveillance systems, and community engagement may help mitigate tenant concerns and support retention in this urban core environment.
The property benefits from proximity to major aerospace and corporate employers that provide workforce housing demand in the Palmdale area.
- Lockheed Martin Aeronautics Co. — defense & aerospace (2.3 miles)
- Waste Management — waste services (2.5 miles)
- Amerisourcebergen — healthcare distribution (28.1 miles)
- Boston Scientific Neuromodulation — medical technology (28.4 miles)
This 52-unit property offers value-add potential in a renter-concentrated market with strong employment fundamentals. The 1986 construction year provides renovation upside opportunities while the neighborhood's 88.3% rental occupancy rate demonstrates sustained tenant demand. Proximity to Lockheed Martin and other aerospace employers supports workforce housing needs, and demographic projections show continued household growth within the 3-mile radius.
Income growth trends of 90% over five years, combined with projected median household income increases to $89,675 by 2028, suggest improving tenant quality and rent growth potential. However, current affordability pressures and crime levels require active property management and strategic capital improvements to maximize returns.
- Strong rental market with 88.3% of neighborhood housing units renter-occupied
- Value-add potential from 1986 vintage allowing unit improvements and rent optimization
- Employment stability from nearby Lockheed Martin aerospace operations
- Projected household income growth supporting future rent increases
- Risk considerations include elevated property crime rates and current affordability constraints