Investigators said an apparent argument between two friends lead to the deadly stabbing in the 13200 block of West Bombay Street just after 2 a.m.
The victim, Zachary Leon, 19, of Colorado was found stabbed to death in the street next to a red Honda Civic.
Neighbors said Leon and the suspect, 21-year-old Sylmar resident Esteban Tabarez, had gone to a party on Bombay Street.
According to detectives, the pair got into an argument that ended with Tabarez stabbing Leon multiple times.
"I was surprised because it has never happened before," said neighbor Isabel Martinez. "It's a little bit scary."
Tabarez was arrested at the scene. He is being charged with murder and is being held on $1 million bail.