31-Unit Apartment
For Sale
$11,250,000
38225 E 9th Street Unit Q11/9T, Palmdale, CA 93550
Newly built townhome-style apartments are vacant and pre-Certificate of Occupancy, allowing a new lease-up strategy.
Property Size45,302 SF
Price / SF$248.33
Days on Market86
Property Features for 38225 E 9th Street Unit Q11/9T
General Information
Standard status
Active
Size
45,302 SF
Property subtype
Multi-family
Financials
Asking Price
$11,250,000
Opportunity Zone
Yes
Site & Location
Highway Access
Yes
Road Access
Yes
Units
Unit Mix
31 x 2BR/2.5BA
Multifamily Units
31
Amenities
private enclosed tandem parking garages
private balconies
in-unit washer/dryer
stainless steel appliances
nine-foot ceilings
Building Details
Year Built
2025
Buildings
4
Stories
3
Construction
townhome-style
Listing Agency:
Marcus & Millichap
Listed By:
Neema Ahadian
(714) 497-3550
Source:
Sevengables
Added: Jun 7
Changed: Aug 30
Last Checked: Aug 30 at 5:40PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap
Investment Insights
Based on property information with market context.
Completed in 2025, this 31-unit apartment property comprises four three-story buildings with townhome-style layouts. Each residence offers two bedrooms, two-and-a-half bathrooms, 1,500 SF of living area, nine-foot ceilings, a private enclosed tandem parking garage, a large private balcony, in-unit washer/dryer, stainless steel appliances, and condo-quality finishes. The property is being offered vacant and pre-Certificate of Occupancy, giving the next owner control over tenant selection, lease-up, and initial rent structure.
The asset is located across from Palmdale City Hall on a thoroughfare carrying 12,800 vehicles per day and approximately one mile from the SR-14 Freeway. Palmdale Marketplace, Antelope Valley Mall, Palmdale Regional Medical Center, and Air Force Plant 42 are nearby. The property is also within a federally designated Qualified Opportunity Zone and benefits from proximity to regional aerospace, defense, and healthcare employment centers.
The asset is located across from Palmdale City Hall on a thoroughfare carrying 12,800 vehicles per day and approximately one mile from the SR-14 Freeway. Palmdale Marketplace, Antelope Valley Mall, Palmdale Regional Medical Center, and Air Force Plant 42 are nearby. The property is also within a federally designated Qualified Opportunity Zone and benefits from proximity to regional aerospace, defense, and healthcare employment centers.
Key Highlights
- 31 units across four three‑story buildings
- Each unit includes 1,500 SF, two bedrooms, and two‑and‑a‑half bathrooms
- Vacant and pre‑Certificate of Occupancy for controlled lease‑up
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$704,129
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.26%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$14,082,580
$14.1M
Cap Rate 7%
$10,058,986
$10.1M
Cap Rate 9%
$7,823,656
$7.8M
Market Conditions
NOI Build-Up for 45,302 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$1.36M $30.00/SF
− Vacancy
−$78.8K −$1.74/SF
EGI
$1.28M $28.26/SF
− OpEx
−$576.1K −$12.72/SF
NOI
$704.1K $15.54/SF
Area
Palmdale, CA
Vacancy
5.80%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$14,082,580
Cap Rate 7%
$10,058,986
Cap Rate 9%
$7,823,656
Alternative Uses
Best Use
Apartment 5plus
$10.06M
$8.80M – $11.74M
NOI $704,129 @ 7.0% cap · market cap 6.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$19.13M
$16.74M – $22.32M
NOI $1,338,968 @ 7.0% cap · market cap 11.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
31
Residential units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,195
Businesses Nearby
Explore this area
Business Placement
Demographics for 93550, CA
82,379
Population
23,965
Households
3.4
Avg Household Size
31
Median Age
10%
College-Educated
71%
High-School Grad
259.3 sq mi
ZIP Area
318
Density / Sq Mi
$63,811
Median Household Income
$34,287
Median Earnings
$1,573
Median Rent
$378,700
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Newly built townhome-style apartments are vacant and pre-Certificate of Occupancy, allowing a new lease-up strategy.
Where is this apartment building located?
The property is located at 38225 E 9th Street Unit Q11/9T Palmdale, CA.
What is the asking price?
The asking price for this property is $11,250,000.
What are key features of this property?
This property features: 31 units across four three‑story buildings; Each unit includes 1,500 SF, two bedrooms, and two‑and‑a‑half bathrooms; Vacant and pre‑Certificate of Occupancy for controlled lease‑up
