2200 E Palmdale Blvd
Palmdale, CA 93550
Towne Square East Plaza · Retail Property For Sale

Marcus & Millichap is pleased to present the opportunity to acquire the fee simple
interest in Towne Square East Plaza, a 93% occupied neighborhood shopping center
located in Palmdale, California (Los Angeles County). Offered at $18,700,000, the property
encompasses 92,073 square feet of rentable space on 13.85 acres and is anchored by a
strong mix of internet-resistant tenants including Crunch Fitness, the United States Postal
Service, and Los Angeles County Department of Mental Health. The center also features
multiple pad sites with service and restaurant users, creating a diverse and durable
tenant base supported by nearly $500,000 in capital improvements and approximately
$5,000,000 in tenant improvements over the past decade.
Strategically positioned along East Palmdale Boulevard with 34,000 vehicles passing
daily and convenient access to Aerospace Highway, the property benefits from excellent
visibility and connectivity within a dense retail corridor surrounded by major national
tenants such as Target, The Home Depot, and Ross. The subject property is located within
a designated California Opportunity Zone, established under the Tax Cuts and Jobs Act of
2017, which may provide investors the ability to defer or reduce capital gains taxes through
qualified Opportunity Zone investment structures. California contains 879 designated
Opportunity Zones, with approximately 3.0 million residents living within these areas. The
offering provides investors with both stable in-place income and upside through lease-up
of remaining vacancy, projecting a Year 1 NOI of $1,412,173 at a 7.55% cap rate and a Year 3
stabilized cap rate of 9.24%. Located within a California Opportunity Zone and supported
by strong five-mile demographics of nearly 144,000 residents with average household
income above $90,000, Towne Square East Plaza represents a compelling long-term
investment opportunity.