| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 87th | Best |
| Demographics | 66th | Fair |
| Amenities | 40th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1129 Montebello Dr, Gilroy, CA, 95020, US |
| Region / Metro | Gilroy |
| Year of Construction | 1973 |
| Units | 69 |
| Transaction Date | 1998-03-03 |
| Transaction Price | $4,100,000 |
| Buyer | NOOMEN KARI LYNN SCHALKER |
| Seller | SCHROCK ANTHONY |
1129 Montebello Dr, Gilroy Multifamily Investment Opportunity
Neighborhood occupancy is approximately 96.5% and elevated home values in Santa Clara County help sustain renter demand, according to CRE market data from WDSuite.
Located in suburban Gilroy within the San Jose–Sunnyvale–Santa Clara metro, the neighborhood posts a B- rating and ranks 183 out of 344 metro neighborhoods, placing it around the metro middle. For investors, the headline is demand resilience: neighborhood occupancy is competitive among San Jose–Sunnyvale–Santa Clara neighborhoods (127 of 344; 80th percentile nationally), supporting stable income performance at similar assets.
Schools are a relative strength, with the neighborhood’s average school rating around 4.0 out of 5 (rank 74 of 344), which is top quartile nationally and competitive within the metro. Daily conveniences are mixed: restaurants and cafes track around mid-to-high national percentiles, while parks and childcare are limited in the immediate area. These amenity dynamics suggest a primarily residential setting with reliance on nearby corridors for recreation and services.
The property’s 1973 vintage is older than the neighborhood’s average construction year (1996), pointing to potential value-add through unit/interior modernization and system upgrades. Well-executed renovations can enhance competitiveness versus newer stock while requiring thoughtful capital planning.
Tenure patterns indicate a moderate renter base: within the neighborhood, an estimated 31.6% of housing units are renter-occupied, signaling depth without oversaturation. Within a 3-mile radius, renters account for roughly 39% of occupied housing, and both population and households have increased over the past five years, with forecasts indicating continued household expansion by 2028. Together with a high-cost ownership market (median home values above $1 million and a high value-to-income ratio), these conditions tend to reinforce multifamily demand and support lease retention and pricing discipline.
Affordability balance is notable: the neighborhood rent-to-income ratio around 20% suggests room for careful revenue management relative to incomes, while still monitoring resident retention. According to WDSuite’s CRE market data, median contract rents and household incomes in the area have trended upward, and NOI per unit benchmarks rank high within the metro, aligning with the stability implied by occupancy.
Safety compares less favorably to broader benchmarks. The neighborhood’s overall crime rank sits in the lower third within the San Jose–Sunnyvale–Santa Clara metro (274 of 344), and national percentiles indicate below-average safety relative to neighborhoods nationwide. For underwriting, this argues for prudent operating assumptions and emphasis on property-level security and community engagement.
Recent momentum is mixed: estimated property offenses show a year-over-year decrease (about -11%), while estimated violent offenses increased over the same period. Investors should weigh these divergent trends with local management practices and consider how visibility, lighting, and resident screening can support retention and occupancy.
Proximity to South Bay technology and corporate offices supports a diversified renter pool seeking commute convenience. Key nearby employers include IBM’s Silicon Valley Lab, Netflix, eBay, Adobe, and PayPal.
- IBM Silicon Valley Lab — technology R&D offices (15.4 miles)
- Netflix — streaming & technology (26.7 miles) — HQ
- eBay — e-commerce (26.9 miles) — HQ
- Adobe Systems — software (27.7 miles)
- Paypal Holdings — fintech (31.1 miles) — HQ
1129 Montebello Dr is a 69-unit, 1973-vintage asset positioned in a high-cost ownership market where neighborhood occupancy is competitive among metro peers and nationally strong. Elevated home values and a rent-to-income ratio near 20% point to durable renter reliance on multifamily housing and measured pricing power, while the older vintage creates a clear path for value-add through unit and building modernization. Population and household growth within a 3-mile radius, with forecasts calling for further household expansion by 2028, support a larger tenant base and occupancy stability. These dynamics align with neighborhood-level NOI benchmarks that are strong relative to the metro, based on CRE market data from WDSuite.
Counterbalances include older systems typical of 1970s construction and safety metrics that trail national norms, alongside uneven neighborhood amenities. Targeted capital planning, improved curb appeal, and focused operations can help mitigate risks and position the property competitively against newer stock across the South Santa Clara submarket.
- Competitive neighborhood occupancy with nationally strong standing supports income stability.
- High-cost ownership market reinforces renter demand and potential lease retention.
- 1973 vintage offers value-add potential through renovations and system upgrades.
- 3-mile radius shows growing households, expanding the renter pool over the medium term.
- Risks: older building systems, below-average safety metrics, and uneven amenity depth may require enhanced operations and capex.