| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 87th | Best |
| Demographics | 66th | Fair |
| Amenities | 40th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1055 Montebello Dr, Gilroy, CA, 95020, US |
| Region / Metro | Gilroy |
| Year of Construction | 1978 |
| Units | 70 |
| Transaction Date | 2016-02-03 |
| Transaction Price | $17,200,000 |
| Buyer | PLUM TREE WEST PRESERVATION LIMITED PART |
| Seller | PLUM TREE PRESERVATION LIMITED PARTNERSH |
1055 Montebello Dr Gilroy Multifamily Investment
Neighborhood occupancy is high and steady, and elevated home values help support renter demand in Gilroy, according to WDSuite’s CRE market data. Metrics cited reflect neighborhood conditions, not the property’s own performance.
Gilroy’s suburban neighborhood profile shows balanced livability with selective strengths for multifamily investors. Neighborhood occupancy is 96.5% (competitive among San Jose–Sunnyvale–Santa Clara’s 344 neighborhoods and above national norms), indicating dependable baseline demand at the neighborhood level. The share of housing units that are renter-occupied is 31.6%, suggesting a meaningful — though not dominant — renter concentration that can support leasing while still competing with ownership options.
Within a 3-mile radius, demographics point to a larger tenant base over time: population grew over the last five years and is projected to expand further, with households also projected to increase, supporting renter pool expansion and occupancy stability. Household incomes in the 3-mile area are high, and median contract rents have risen over the past five years, while rent-to-income levels around the neighborhood (about 20%) indicate manageable affordability pressure that can aid retention and measured pricing power. This framing is based on commercial real estate analysis from WDSuite.
Quality-of-life indicators are mixed but investable. Average school ratings in the neighborhood are strong (top quartile nationally and competitive locally at rank 74 of 344), which can bolster family-oriented renter demand. Amenity access trends mid-pack overall, with restaurants around the national midpoint and cafes above average; parks and formal childcare are thinner locally, so residents may rely more on nearby city amenities.
The neighborhood’s housing stock trends newer than this 1978 asset (area average 1996), implying potential value-add via interior modernization, common-area upgrades, and system replacements as part of capital planning to maintain competitive positioning against younger comparables.
Safety indicators for the neighborhood sit below national norms, with crime metrics in lower national percentiles. Within the San Jose–Sunnyvale–Santa Clara metro, the neighborhood ranks toward the lower tier (crime rank 274 of 344), signaling that investors should incorporate prudent security, lighting, and operational protocols into underwriting and asset management.
Recent trend data show some improvement in property offenses year over year, according to WDSuite’s CRE market data. Even so, the overall profile remains less favorable than many metro peers, so risk-adjusted expectations and mitigation spend should be considered.
Proximity to South Bay employment anchors supports commuter demand and lease retention for workforce and professional renters. Key employers within a commutable radius include IBM, Netflix, eBay, Adobe, and PayPal.
- IBM Silicon Valley Lab — technology R&D (15.5 miles)
- Netflix — streaming & media (26.8 miles) — HQ
- Ebay — e-commerce (27.0 miles) — HQ
- Adobe Systems — software (27.7 miles)
- Paypal Holdings — fintech (31.2 miles) — HQ
This 70-unit, 1978-vintage property in Gilroy benefits from neighborhood-level occupancy that is competitive within the San Jose metro and high by national standards, plus a renter base supported by a high-cost ownership market. Elevated home values and strong household incomes in the 3-mile area reinforce reliance on multifamily housing, while rent-to-income levels around 20% suggest room for steady retention and disciplined rent management. Based on CRE market data from WDSuite, rising household counts and projected growth point to a larger tenant base over the medium term.
Relative to the neighborhood’s newer average vintage (1996), the 1978 construction year indicates clear value-add and capital planning opportunities to sustain competitiveness versus younger stock. School quality and access to South Bay employers further underpin demand, though investors should underwrite security measures given below-average safety indicators and acknowledge that a moderate renter-occupied share means multifamily competes with ownership.
- High neighborhood occupancy supports stable leasing at the submarket level
- High-cost ownership market and strong incomes reinforce multifamily demand and pricing power
- 1978 vintage offers value-add potential versus the area’s newer housing stock
- 3-mile population and household growth expands the tenant base over time
- Risk: below-average safety metrics and a moderate renter share warrant conservative underwriting and capex for security