$11,250,000
We are pleased to present 38225 9th Street East, a 31-unit brand new construction townhome development located in Palmdale, California. The offering is being brought to market vacant and pre-Certificate of Occupancy, providing an incoming investor full control over lease-up strategy, tenant selection, and initial rent structuring, including the ability to set rents at or above market from day one with no inherited tenancy issues. The subject property is also located within a federally designated Qualified Opportunity Zone, providing investors a rare window to acquire a newly delivered asset at favorable basis with meaningful tax deferral and exclusion benefits. Each of the 31 units is a two-bedroom/two-and-a-half-bath townhome-style apartment across four three-story buildings, featuring 1,500 SF of living space, nine-foot ceilings, private enclosed tandem parking garages, large private balconies, in-unit washer/dryer, stainless steel appliances, and condo-quality finishes throughout, a product type with virtually no direct competition in the Antelope Valley rental market. At the asking price of $11,250,000, the property is offered at $362,903 per unit and $248 per square foot, reflecting a 6.06% blended cap rate at market rents. With no comparable new construction rental product available in the submarket, the incoming investor benefits from a first mover pricing advantage and the ability to establish market rents in an under supplied, demand constrained environment. Palmdale is one of the most under supplied multifamily markets in Los Angeles County, with no significant market-rate apartment product delivered since the 1980s. Renter demand is driven by a deep and growing base of aerospace, defense, and healthcare professionals employed by major regional anchors including Lockheed Martin, Northrop Grumman and Boeing - all within close proximity to Air Force Plant 42. The strength of this demand is further evidenced by the delivery of five new hotel and hospitality assets totaling more than 550 keys in Palmdale over the last five years alone. The property is situated directly across from Palmdale City Hall on a major thoroughfare carrying 12,800 vehicles per day, one mile from the SR-14 Freeway, and proximate to Palmdale Marketplace, Antelope Valley Mall, and Palmdale Regional Medical Center. Looking ahead, the Palmdale Transportation Center is designated as a key station on the California High-Speed Rail system, with the Palmdale-to-Burbank segment already environmentally cleared and a formal city-state agreement executed to develop a multimodal hub connecting HSR, Metrolink, Brightline West, and Amtrak - reducing travel time to the Burbank/LA corridor to approximately 20 minutes and representing a compelling long-term appreciation catalyst for the investment.
62
Beds
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78
Baths
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26845169
MLS
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Active
Status
38225 E 9th Street Unit Q11/9T, Palmdale
