| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 74th | Poor |
| Demographics | 79th | Best |
| Amenities | 30th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 2850 Middlefield Rd, Palo Alto, CA, 94306, US |
| Region / Metro | Palo Alto |
| Year of Construction | 1986 |
| Units | 100 |
| Transaction Date | 2024-02-13 |
| Transaction Price | $59,500,000 |
| Buyer | SPIEKER LIVING TRUST |
| Seller | EQR-SOUTHWOOD LIMITED PARTNERSHIP |
2850 Middlefield Rd Palo Alto Multifamily Investment
Neighborhood fundamentals point to durable renter demand supported by high incomes and a high-cost ownership market, according to WDSuite’s CRE market data. Occupancy in the surrounding area has been generally stable, with a balanced renter base that supports leasing resilience.
Situated in Palo Alto’s Inner Suburb, the property benefits from a neighborhood rated B- and positioned around the metro median among 344 San Jose–Sunnyvale–Santa Clara neighborhoods. The area’s high-cost ownership landscape (home values among the strongest nationally) sustains depth of demand for quality rentals and supports retention and pricing discipline for professionally managed multifamily.
Amenity access is mixed: cafes are plentiful (competitive nationally), while immediate walk-to options for groceries, parks, and pharmacies are thinner, shifting daily needs to nearby corridors. Average school ratings are strong relative to national norms, a family-friendly signal that can bolster longer-term tenancy and reduce turnover risk.
Neighborhood rents sit at the high end nationally, while the rent-to-income profile indicates less severe affordability pressure than many coastal submarkets, helping lease management and renewal strategies. Occupancy in the neighborhood is near the national middle and has edged down modestly over the past five years, suggesting careful revenue management is warranted but that the tenant base remains durable.
At the property level, the 1986 vintage is newer than the neighborhood’s older average stock. That positioning can be competitively favorable versus mid-century assets, though investors should budget for modernization of building systems and selective interior refreshes to meet contemporary renter expectations.
Demographic data aggregated within a 3-mile radius indicates steady population and household growth, with forecasts calling for more households and a slightly larger renter pool over the next five years. Smaller average household sizes are expected, which typically supports multifamily demand and occupancy stability across a range of unit mixes.
Safety indicators are mixed when viewed across geographies. Within the metro, the neighborhood’s crime rank places it in a more impacted tranche compared with the median among 344 neighborhoods, warranting standard operational vigilance and lighting/security best practices. Nationally, the area trends modestly safer than average overall, with violent incidents around national midlevels.
Property crime appears comparatively elevated versus national benchmarks but has shown meaningful year-over-year improvement. For investors, this suggests a focus on access control, package management, and visibility measures to support resident satisfaction and retention while benefiting from recent downward trends.
Proximity to major technology employers underpins a deep white-collar renter base and supports leasing stability for workforce and professional households. Key nearby demand drivers include HP, Hewlett Packard Enterprise, Alphabet, Tesla, and Facebook.
- HP — technology (1.5 miles) — HQ
- Hewlett Packard Enterprise — technology (1.5 miles) — HQ
- Alphabet — technology (2.5 miles) — HQ
- Tesla — technology (2.9 miles) — HQ
- Facebook — technology (3.7 miles) — HQ
This 100-unit asset in Palo Alto is positioned in a high-income, high-cost ownership market where renters rely on quality multifamily options. Based on CRE market data from WDSuite, neighborhood asking rents track near the top of national ranges while occupancy sits around the middle, indicating durable demand with room for revenue optimization via renewals and targeted upgrades.
Built in 1986, the property is newer than much of the surrounding mid-century stock, providing a competitive edge against older assets while still offering a clear playbook for modernization. Within a 3-mile radius, steady population levels and an expected increase in households point to a larger tenant base and sustained leasing velocity, supported by proximity to major tech employment nodes.
- High-cost ownership market reinforces multifamily demand and supports retention
- 1986 vintage offers value-add potential versus older neighborhood stock
- Strong nearby tech employers deepen the professional renter pool and leasing stability
- Neighborhood rents are elevated nationally while occupancy remains steady, per WDSuite
- Risks: property crime requires active security/operations; limited walk-to daily retail may affect convenience