| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 80th | Best |
| Demographics | 23rd | Fair |
| Amenities | 24th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 502 N Mercey Springs Rd, Los Banos, CA, 93635, US |
| Region / Metro | Los Banos |
| Year of Construction | 2010 |
| Units | 34 |
| Transaction Date | 2013-12-31 |
| Transaction Price | $4,300,000 |
| Buyer | California Affordable Housing Agency |
| Seller | Capital Alliance Advisors, Inc |
502 N Mercey Springs Rd Los Banos Multifamily Investment
Neighborhood occupancy is exceptionally strong and rents are competitive for the metro, supporting income stability according to WDSuite’s CRE market data.
Situated in Los Banos (Merced County), the property benefits from a neighborhood rated B+ and competitive positioning among 70 metro neighborhoods. Neighborhood occupancy is top tier nationally and ranks at the top of the Merced metro, a signal of durable renter demand and strong lease retention potential at the submarket level (neighborhood occupancy, not property-level performance).
Rents in the neighborhood track in the top quartile nationally and rank near the top among Merced neighborhoods, indicating the area can support market-rate pricing without relying on outsized concessions. At the same time, the rent-to-income ratio in the neighborhood reads as manageable, which can reduce near-term affordability pressure and support steady collections. According to WDSuite’s commercial real estate analysis, median home values in the neighborhood sit in a higher-cost ownership context (high national percentile), which tends to reinforce reliance on multifamily housing and can aid pricing power and renewal capture.
Livability is anchored by everyday conveniences rather than destination retail. Grocery and childcare access score above the metro median with national percentiles around the 70s, while cafes, restaurants, parks, and pharmacies are comparatively sparse within the immediate neighborhood. For investors, this points to a resident base oriented toward practical amenities and commuting patterns, with potential for stable workforce housing demand.
Vintage matters: built in 2010, the asset is newer than the neighborhood average vintage (2004). That recency can provide a competitive edge versus older stock and may translate to lower near-term capital needs, while still leaving room for selective modernization to drive rent premiums.
Tenure and demographics support depth of demand. Roughly four in ten neighborhood housing units are renter-occupied, providing a meaningful tenant base without over-reliance on transient renters. Within a 3-mile radius, recent years show population and household growth, and forecasts indicate further population gains alongside a shift toward smaller household sizes—conditions that can expand the renter pool and support occupancy stability over the medium term.
Safety indicators sit around the national middle, with the neighborhood competitive among Merced’s 70 neighborhoods based on its crime rank. Trend data from WDSuite shows notable year-over-year improvement: estimated violent offenses declined sharply and property offenses moderated, suggesting conditions have been moving in a favorable direction. As always, investors should underwrite block-by-block variability, but the metro-relative standing and recent trend provide constructive context.
This 34-unit asset (built 2010) offers a relative quality advantage versus older neighborhood stock and is positioned in a Los Banos neighborhood where occupancy trends are top tier for the metro and strong nationally. The area supports competitive market rents while neighborhood rent-to-income reads as manageable, helping sustain collections and reduce turnover risk. According to CRE market data from WDSuite, higher home values in the neighborhood context reinforce renter reliance on multifamily housing, supporting pricing power over time.
Within a 3-mile radius, population and households have expanded and are projected to continue growing, with smaller household sizes indicating a larger pool of renters over the forecast horizon. Everyday amenities are present, though limited dining and park density suggest residents rely on nearby corridors for services—consistent with stable workforce housing dynamics. Overall, the combination of occupancy strength, supportive demographics, and a newer vintage creates a straightforward case for durable income with targeted value-add potential.
- Occupancy strength at the neighborhood level supports income stability and renewal capture.
- 2010 construction offers competitive positioning versus older local stock with selective modernization upside.
- Higher-cost ownership landscape sustains multifamily demand and pricing power.
- 3-mile population and household growth expands the tenant base and supports occupancy over time.
- Risks: thinner dining/park amenity density and mixed-but-improving safety metrics warrant underwriting for commute patterns and resident retention.