| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 84th | Good |
| Demographics | 41st | Poor |
| Amenities | 72nd | Good |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 9005 Kern Ave, Gilroy, CA, 95020, US |
| Region / Metro | Gilroy |
| Year of Construction | 1992 |
| Units | 24 |
| Transaction Date | 2017-11-02 |
| Transaction Price | $5,400,000 |
| Buyer | REDWOODS WHEELER LP |
| Seller | EDEN REDWOODS LLC |
9005 Kern Ave Gilroy Multifamily Investment
This 24-unit property built in 1992 benefits from neighborhood occupancy rates at 98.3%, reflecting strong rental demand in the Silicon Valley market according to CRE market data from WDSuite.
Located in Gilroy's Urban Core, this neighborhood ranks in the top quartile nationally for occupancy rates at 98.3%, demonstrating exceptional rental market stability. The area maintains strong fundamentals with median household income of $127,175 within a 3-mile radius and contract rents averaging $2,123 for one-bedroom units, positioning the submarket favorably for sustained tenant demand.
The property's 1992 construction year aligns with the neighborhood average of 1978, indicating consistent building stock that may present value-add renovation opportunities for investors seeking to enhance unit appeal and rental premiums. With 43.8% of housing units occupied by renters, the area provides a substantial tenant base while elevated home values at $921,896 median reinforce rental demand as ownership costs remain elevated relative to incomes.
Demographic projections within the 3-mile radius show household growth from 15,181 to 19,813 units by 2028, representing a 30.5% increase that supports expanding renter demand. The neighborhood's amenity profile includes above-average childcare density and park access, contributing to tenant retention appeal, though investors should monitor the below-average school ratings when evaluating family-oriented rental strategies.
Crime metrics show the neighborhood ranking 265th among 344 metro neighborhoods for overall crime, placing it in the lower portion of the regional safety profile. Property offense rates of 918 per 100,000 residents have declined 10.4% year-over-year, indicating improving trends, though violent crime rates increased significantly during the measurement period.
The 29th national percentile for crime performance suggests safety considerations remain relevant for tenant screening and property management strategies. Investors should factor security measures and tenant retention programs into operating budgets while monitoring ongoing crime trend improvements in the broader Gilroy market.
The property benefits from proximity to major Silicon Valley employers, providing workforce housing opportunities for technology and corporate professionals within reasonable commuting distance.
- IBM Silicon Valley Lab — technology offices (14.7 miles)
- Netflix — streaming technology HQ (26.1 miles)
- eBay — e-commerce technology HQ (26.3 miles)
- Adobe Systems — software development (27.0 miles)
- PayPal Holdings — financial technology HQ (30.4 miles)
The 9005 Kern Ave property presents a compelling multifamily investment opportunity anchored by exceptional neighborhood occupancy rates of 98.3% and strong demographic fundamentals. Built in 1992, the asset offers potential value-add upside through strategic renovations while benefiting from a growing household base projected to expand 30.5% by 2028 within the 3-mile radius.
The Gilroy location provides workforce housing access to major Silicon Valley employers while maintaining more attainable rental rates compared to core tech markets. Median household incomes of $127,175 support rent sustainability, though investors should consider the neighborhood's crime profile and below-average school ratings in tenant mix and retention strategies.
- Exceptional 98.3% neighborhood occupancy rate indicates strong rental demand stability
- Projected 30.5% household growth through 2028 supports expanding tenant base
- 1992 construction offers value-add renovation potential for rent premiums
- Workforce housing positioning near major Silicon Valley employers
- Risk consideration: Monitor crime trends and tenant retention given safety profile