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: $875,000 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 $875,000 Projected Cap Rate Cap Rate: 6.86% (Based on $60,000 NOI ÷ $875,000 Purchase Price) Cap Rate Commentary A ~6.85% 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