| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 67th | Poor |
| Demographics | 17th | Poor |
| Amenities | 59th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 38652 11th St E, Palmdale, CA, 93550, US |
| Region / Metro | Palmdale |
| Year of Construction | 1986 |
| Units | 28 |
| Transaction Date | 2017-03-16 |
| Transaction Price | $479,000 |
| Buyer | GROUP V SAN BERNARDINO LP |
| Seller | LR MUNOZ REAL ESTATE HOLDINGS LLC |
38652 11th St E Palmdale Multifamily Investment
This 28-unit property built in 1986 serves a neighborhood with strong renter concentration, where 88.3% of housing units are renter-occupied according to WDSuite's CRE market data. The area's established rental market dynamics support consistent tenant demand in the Palmdale submarket.
The neighborhood demonstrates strong fundamentals for multifamily investment, ranking in the top quartile nationally for renter concentration with 88.3% of housing units being renter-occupied. This exceptionally high rental share creates a deep tenant base and reinforces consistent demand for multifamily housing. Neighborhood-level occupancy rates of 91.6% reflect stable absorption, while median contract rents of $1,137 position the area competitively within the broader Los Angeles metro market.
Demographics within a 3-mile radius show a population of approximately 64,250 with modest growth of 7% over the past five years, while households are projected to increase by 30.3% through 2028, expanding the potential tenant pool. The area's median household income of $59,233 within the 3-mile radius provides adequate support for current rent levels, though affordability dynamics require careful lease management given income constraints in the immediate neighborhood.
The property's 1986 construction year aligns closely with the neighborhood average of 1970, indicating consistent building stock that may present value-add renovation opportunities for investors seeking to modernize units and capture higher rents. Home values averaging $344,600 in the neighborhood limit ownership accessibility, reinforcing reliance on rental housing and supporting long-term tenant retention dynamics.
Safety metrics show mixed trends that warrant investor consideration. The neighborhood ranks 1,118th out of 1,441 Los Angeles metro neighborhoods for overall crime, placing it below the metro median. Property crime rates of approximately 1,037 incidents per 100,000 residents represent a moderate concern, though recent trends show a slight 2.1% increase year-over-year.
Violent crime rates are more encouraging, with the area experiencing a 17.9% decline over the past year, indicating improving safety conditions. While crime levels remain above metro averages, the downward trend in violent offenses suggests positive momentum that may support tenant retention and property values over time.
The local employment base is anchored by major aerospace and corporate operations that provide workforce housing demand within commuting distance of the property.
- Lockheed Martin Aeronautics Co. — aerospace & defense (1.8 miles)
- Waste Management - Palmdale — waste services (2.6 miles)
- Amerisourcebergen — pharmaceutical distribution (28.2 miles)
- Boston Scientific Neuromodulation — medical devices (28.5 miles)
- Charter Communications — telecommunications (29.8 miles)
This Palmdale multifamily asset offers investors exposure to one of the strongest rental markets in the Los Angeles metro area, with 88.3% renter-occupied units creating exceptional depth in the tenant base. The property's 1986 vintage presents clear value-add potential through strategic renovations, while projected household growth of 30.3% through 2028 according to multifamily property research supports long-term absorption and occupancy stability.
Elevated home values relative to local incomes reinforce rental demand by limiting ownership accessibility, while the presence of major employers like Lockheed Martin within close proximity provides workforce housing stability. However, investors should carefully evaluate affordability pressures and crime trends when underwriting rental growth assumptions and tenant retention strategies.
- Exceptional rental market depth with 88.3% renter-occupied housing units
- Projected 30.3% household growth through 2028 expanding tenant base
- Value-add renovation potential with 1986 construction vintage
- Proximity to major aerospace employer Lockheed Martin (1.8 miles)
- Income constraints and crime levels require careful lease management