Overview

Description

Marcus & Millichap is please to present for sale two adjacent vacant unimproved raw land parcels totaling approximately 261,394 square feet or 6.00 acres for development located the west side of 10th Street E Avenue immediately adjacent and South of SecurCare Self Storage and to the West and across the street from Tumbleweed Elementary School in Palmdale, California.

Known as “A Place to Call Home” Palmdale is a beautiful city that cherishes small-town values and a love for its community. Nestled in the center of northern LA County, next to the San Gabriel Mountains, Palmdale is home to more than 169,0000 residents, The Aerospace industry has historically been the main driving force in the area’s economy, although Palmdale also enjoys many thriving businesses in the manufacturing and service industries. Palmdale offers the opportunity to shape a highly-technical growing city at only 25% built out with major projects in the pipeline including two high-speed rail lines, re-establishing commercial air service, trans modal transportation planning for the future and expansion of aerospace and station area planning phase of east-west high speed rail lines to Las Vegas and north-south in California. Major announcements include a new distribution center from Amazon and potential relocation for defense and aerospace giants Northrop-Grumman.

With Tax FREE Opportunity Zone Advantage, the site is currently zoned C-5 while the City is undergoing a General Plan Update and will be changing some zones in the City. The Subject Property will be re-zoned as Neighborhood Residential 4. This has not been officially approved and will be going to City Council in September-October, 2022.

Renters seeking affordable apartments have made the Antelope Valley Sub-market one of the best performing sub-markets in L.A. County in recent years. The sub-market faced the early stages of the pandemic in stride. While vacancy in L.A. County spiked to the highest levels in decades, the Antelope Valley remained one of the tightest locations in the metro. Today, the sub-market is still one of the tighter apartment locations in the metro. The area’s relatively low rents tend to deter development. Rent levels and sale prices in the Antelope Valley are significantly lower than in the rest of L.A. County. Antelope Valley has historically been a thinly traded market, but strong rent growth in recent years has brought stronger investment interest.

In contrast to the Greater Los Angeles apartment market, which saw vacancies spike to the highest levels in decades, the Antelope Valley Sub-market saw vacancies decline in 2020. Strong demand has persisted, and vacancies, currently 3.1%, are below the L.A. metro average. L.A.’s more affordable and suburban locations have generally fared better during the past two years. The Antelope Valley is removed from the center of the Los Angeles metro. Renters select the sub-market to find some of the cheapest housing in L.A. County. The aerospace industry has a significant presence, home to R&D and production facilities for Boeing, Lockheed Martin, Northrop Grumman, and others.

Antelope Valley has seen limited multifamily construction for decades. Multifamily inventory is clustered in Palmdale and Lancaster. Nearly 75% of the sub-market’s inventory is 3 Star properties, compared with the metro’s average of about 33%. The remaining inventory consists entirely of 1 & 2 Star properties, as there are no 4 or 5 Star apartment communities in the Antelope Valley.

Apartment stock also skews toward family housing; two and three-bedroom apartments account for over 65% of units, compared to about 40% on average in L.A. Low-rise garden-style properties make up the lion’s share of communities. Almost all supply is more than 20 years old.

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