| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 87th | Best |
| Demographics | 66th | Fair |
| Amenities | 40th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 985 Montebello Dr, Gilroy, CA, 95020, US |
| Region / Metro | Gilroy |
| Year of Construction | 1979 |
| Units | 80 |
| Transaction Date | 2019-07-22 |
| Transaction Price | $25,800,000 |
| Buyer | TOWMAN CADENA LLC |
| Seller | MONTE BELLO RIDGE LLC |
985 Montebello Dr, Gilroy CA Multifamily Investment
Stable neighborhood occupancy and a high-cost ownership landscape point to durable renter demand, according to WDSuite s CRE market data. The asset s scale supports operating efficiency while location fundamentals in South Santa Clara County provide steady, workforce-oriented tenancy.
Located in suburban Gilroy within the San Jose Sunnyvale Santa Clara metro, the neighborhood shows competitive occupancy dynamics ranked 127 out of 344 metro neighborhoods and in the top quartile nationally for occupancy supporting cash flow stability (based on CRE market data from WDSuite). Renter-occupied housing comprises roughly one-third of neighborhood units, indicating a moderate renter concentration with a defined tenant base, while the broader 3-mile radius shows a larger renter pool and continued leasing depth.
The area s ownership market is high cost relative to incomes (nationally high value-to-income and home value percentiles), which tends to sustain reliance on multifamily rentals and can aid retention and pricing power. Within a 3-mile radius, population and households have expanded in recent years and are projected to continue growing, signaling a larger tenant base and reinforcing demand for professionally managed apartments.
Everyday convenience is adequate: restaurants and pharmacies register mid-to-above-median national percentiles, and cafes are competitive among San Jose-area neighborhoods (ranked 130 of 344). Park access and childcare options are thinner locally, so on-site amenities and unit features can be meaningful differentiators for resident retention.
The property was built in 1979, notably older than the neighborhood s average 1996 vintage. Investors should underwrite ongoing capital needs and consider value-add upgrades to enhance competitiveness against newer stock while leveraging the submarket s occupancy stability.
Safety indicators are mixed and should be evaluated in context. The neighborhood ranks below the metro median on crime (ranked 274 of 344 for overall crime metrics), and national comparisons place it in lower percentiles for safety. Recent trends are nuanced: property offenses show a year-over-year decline, while violent offense rates increased over the same period. Investors may wish to incorporate these patterns into leasing strategy, security measures, and underwriting assumptions.
Regional employment anchors within commutable distance help support workforce housing demand, including technology and enterprise campuses concentrated to the north. Key employers include IBM, Netflix, eBay, Adobe, and PayPal.
- IBM Silicon Valley Lab corporate offices (15.6 miles)
- Netflix corporate offices (26.9 miles) HQ
- eBay corporate offices (27.1 miles) HQ
- Adobe Systems corporate offices (27.8 miles)
- PayPal Holdings corporate offices (31.3 miles) HQ
An 80-unit, 1979-vintage asset in a suburban Santa Clara County neighborhood with competitive occupancy and a high-cost ownership backdrop offers durable renter demand and operational scale. According to commercial real estate analysis from WDSuite, neighborhood occupancy trends sit in the top quartile nationally and are competitive within the San Jose metro, while 3-mile demographics point to continued population and household growth that can expand the renter pool.
The older vintage creates clear value-add and capital planning angles to position against newer nearby stock. High home values relative to incomes reinforce reliance on rental housing, supporting pricing power and lease retention when paired with pragmatic amenity and unit upgrades. Risk considerations include thinner park/childcare amenities and safety metrics below the metro median; both can be managed through targeted resident services and security best practices.
- Competitive neighborhood occupancy supports cash flow stability
- High-cost ownership market underpins multifamily demand and retention
- 1979 vintage offers value-add and capex-driven upside
- 3-mile population and household growth expands the tenant base
- Watch items: below-metro safety metrics and limited parks/childcare nearby