| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 74th | Poor |
| Demographics | 25th | Poor |
| Amenities | 65th | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 450 E 8th St, Gilroy, CA, 95020, US |
| Region / Metro | Gilroy |
| Year of Construction | 1987 |
| Units | 24 |
| Transaction Date | 2016-07-01 |
| Transaction Price | $2,423,500 |
| Buyer | ASPEN GROVE APARTMENTS LLC |
| Seller | SOUTH COUNTY HOUSING CORPORATION |
450 E 8th St, Gilroy CA Multifamily Investment
Neighborhood fundamentals point to steady renter demand supported by nearby employment centers and a high renter concentration, according to WDSuite’s CRE market data. Investors may find durable occupancy and pragmatic value-add potential relative to older area stock.
Gilroy’s Urban Core setting offers daily conveniences within a compact radius, with cafes, groceries, restaurants, and parks scoring well relative to the region. Cafe density ranks 26th among 344 metro neighborhoods and parks 31st, both competitive among San Jose–Sunnyvale–Santa Clara neighborhoods and in the top national percentiles. By contrast, childcare and pharmacy access rank at the bottom of the metro, signaling potential lifestyle trade-offs some residents will weigh.
At the neighborhood level, occupancy trends sit in the low-90s, and the share of housing units that are renter-occupied is roughly three-quarters—among the highest in the metro (rank 11 of 344). For investors, that renter concentration suggests a deep tenant base and supports leasing stability even as the local occupancy rate has edged down modestly over five years.
Within a 3-mile radius, demographics indicate population and household growth with rising incomes, expanding the potential renter pool. Forecasts point to more households by 2028 and continued income gains, which can underpin consistent absorption and retention for well-positioned assets. Median contract rents in the area are projected to continue trending upward, reinforcing the case for disciplined revenue management.
The property’s 1987 vintage compares newer than the neighborhood’s older housing stock (average year 1952). That positioning can be advantageous versus legacy buildings, while still leaving room for targeted modernization to enhance competitiveness and support rent positioning without overreliance on extensive capital programs.
Ownership costs are elevated locally (home values land in high national percentiles), which tends to sustain reliance on rental housing and can support pricing power and lease retention. Rent-to-income levels at the neighborhood scale are manageable, suggesting an ability to balance rent growth with resident retention, based on CRE market data from WDSuite.
Safety indicators for the neighborhood track below the metro average and below national percentiles, so investors should underwrite with conservative assumptions and consider property-level security and lighting strategies. Recent trends are directionally favorable: violent offense rates show a notable year-over-year decline and property offenses have eased as well, according to WDSuite’s CRE market data.
In metro context, the neighborhood’s crime rank sits in the lower tier (rank 236 among 344 neighborhoods), while nationally it places in low percentiles. Interpreted practically, this suggests risk management and tenant-experience measures are important to maintain occupancy and retention, but recent improvement trends may help stabilize perception over time.
Regional employment depth is anchored by major tech and enterprise offices within commuting range, which supports workforce housing demand and lease retention. Nearby employers include IBM Silicon Valley Lab, Netflix, eBay, Adobe Systems, and PayPal.
- IBM Silicon Valley Lab — corporate offices (16.7 miles)
- Netflix — corporate offices (28.3 miles) — HQ
- Ebay — corporate offices (28.4 miles) — HQ
- Adobe Systems — corporate offices (29.1 miles)
- Paypal Holdings — corporate offices (32.5 miles) — HQ
450 E 8th St is a 24-unit multifamily property with large average floor plans (about 1,050 sq. ft.) positioned in a renter-heavy neighborhood that maintains low-90s occupancy. The 1987 construction is newer than much of the surrounding housing stock, creating a practical platform for selective renovations that can improve unit finishes and operations without the scope typically required for mid-century assets. High ownership costs in the area reinforce renter reliance on multifamily housing, while a growing 3-mile radius population and household base point to a larger tenant pool over the next five years.
According to CRE market data from WDSuite, neighborhood rent-to-income dynamics are manageable and median rents are projected to rise, supporting a measured revenue-growth thesis. Commuting access to major Silicon Valley employers underpins workforce demand, while investors should underwrite for balanced risk management given below-average school ratings and safety metrics at the neighborhood level.
- Renter-heavy neighborhood supports depth of tenant demand and occupancy stability.
- 1987 vintage offers value-add upside versus older local stock with targeted modernization.
- High-cost ownership market sustains rental reliance and pricing power potential.
- 3-mile radius population and household growth expand the prospective renter base.
- Risks: below-metro safety and school ratings; plan for tenant-experience and security investments.