38113 10th St E, Palmdale, CA 93550

Property Description

****DO NOT DISTURB TENANTS**** Rare opportunity to add a nice sized multifamily property located in the heart of Palmdale, to your portfolio. Yes, it is in an opportunity zone! It’s down the street from the Palmdale Playhouse, in close proximity to the public library, City Hall with public transportation accessible at the street corner. This property has not been on the market in the last 23 years. Because is it comprised of two parcels (not separately transferrable) under one building permit, it is commonly known as 38113 & 38117 10th Street East. There are 4 buildings with 7 units at 38113, and 6 units at 38117. The unit mix is highly desirable with 8 – 2 BR/1 ½ BA townhomes, 3 – 1BR/BA units, 1 – 3 BR/1 3/4 BA unit and a cute single story garden apartment. None of the units have a tenant above, or below which makes for a more peaceful community. All units (except the garden apt) come with an in-unit laundry room with W/D hookups. This property has been well maintained and undergone substantial capital improvements which include a new, upgraded 50-year roof system; repaired roof decks - all fascia boards and flashing were replaced. The re-roof came with a one-time transferrable warranty to a new buyer. A full exterior paint job was recently completed which included full primer and replacement of most window/door/garage trim boards utilizing a high-quality Dunn Edwards exterior paint. Full rehabs have been completed on the majority of units; all air conditioners have been replaced as well as the majority of furnaces and water heaters. There is an upgraded mailbox system and a recently installed surveillance system that covers a large portion of the property. Many upgrades were included in the rehabs such as; full paint, granite countertops, quality laminate countertops, new and refinished cabinets, oak stair treads/poplar risers, tile flooring, replacement of appliances, fixtures/faucets, can lighting, closet door systems and so much more. A complete set of records has been maintained to detail the work for each unit. The “piece de resistance” is that most units are Section 8, and there is a significant upside in rent potential which increases the cap rate to a​​‌​​​​‌​​‌‌​​‌​​‌​​​‌​​​​‌‌​​​‌​​‌‌​​​‌ 6.63%.