38423-38425 E 9th St 3,500 SF Retail Building Palmdale, CA 93550 $989,000 ($282.57/SF) 6.07% Cap Rate

FOR SALE – Freestanding Commercial Building | Owner-User or Investor Opportunity
38423 & 38425 9th Street East, Palmdale, CA 93550
APNs: 3008-035-001 & 3008-035-009
Asking Price: $989,000
Property Overview
Rare opportunity to acquire a well-maintained freestanding commercial building in the heart of Palmdale, ideal for owner-users, medical professionals, or investors seeking stable income with upside.
The property is currently occupied and operated by a long-term dental lab, providing immediate operational credibility. The owner is flexible—willing to relocate, lease back the entire building, or lease a portion, offering multiple exit and income strategies for a buyer.
Building & Site Details
Building Size: Approx. 3,500 SF
Lot Sizes: 6,127 SF + 2,639 SF (two parcels)
Configuration: Freestanding structure
Parking:
Two dedicated on-site parking areas (one on each side of the building)
Additional street parking available
Zoning: Buyer to verify permitted uses
Recent Capital Improvements
Brand-New Roof (2024)
Brand-New HVAC System (2024)
Electrical & Plumbing Upgrades (2018)
Significant capital improvements reduce near-term maintenance risk and support long-term ownership stability.
Tenant / Lease-Back Option
Proposed Lease-Back:
$5,000/month + NNN (entire building)
Flexible terms; partial lease also available
Creates an attractive day-one income stream for investors while preserving future owner-user potential.
Investment Highlights
Attractive Price Point: Approx. $250/SF, well below replacement cost
Projected Gross Income: $60,000 annually (based on proposed lease-back)
Value-Add Upside: Market rents, partial leasing, or future owner-occupancy
Low Capital Risk: Major systems already upgraded
Strong Local Demand: Medical, dental, professional, and light commercial users
Market Overview – Palmdale, CA
Palmdale continues to benefit from:
Steady population growth in North Los Angeles County
Strong demand for medical and professional office space
Limited supply of small freestanding commercial buildings suitable for owner-users
Proximity to major employers, residential neighborhoods, and key transportation corridors
Comparable freestanding commercial properties in Palmdale typically trade in the $275–$350/SF range, positioning this offering as a compelling value with upside.
Ideal For
Medical or dental users
Laboratory, professional office, or specialty service businesses
Owner-users seeking rental income from partial occupancy
Investors looking for stabilized or semi-stabilized assets
Financial Analysis & Cap Rate
Proposed Income (Lease-Back Scenario)
Base Rent: $5,000 / month
Annual Gross Rent: $60,000
Lease Structure: NNN (tenant responsible for property taxes, insurance, and common area expenses)
Estimated NOI: $60,000 annually (NNN structure)
Asking Price
$989,000
Projected Cap Rate
Cap Rate: 6.07%
(Based on $60,000 NOI ÷ $989,000 Purchase Price)
Cap Rate Commentary
A ~6.07% cap rate is strong for a small freestanding commercial asset in Palmdale, particularly with:
Brand-new roof & HVAC
Minimal deferred maintenance
Long-term existing operator
NNN expense pass-through
Comparable small freestanding buildings in the Palmdale market typically trade between 6.25% – 7.25% caps, depending on lease term and tenant strength, placing this asset squarely in-market with upside.
Upside Scenarios
Rent Growth: Future market rents or re-tenanting could push NOI higher
Partial Owner-User: Occupy a portion while offsetting expenses with rental income
Stabilization: Longer-term lease may compress cap rate further upon resale