| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 77th | Fair |
| Demographics | 88th | Best |
| Amenities | 97th | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 600 Sand Hill Rd, Palo Alto, CA, 94304, US |
| Region / Metro | Palo Alto |
| Year of Construction | 2005 |
| Units | 106 |
| Transaction Date | 2006-06-01 |
| Transaction Price | $15,000,000 |
| Buyer | PALO ALTO CARE CENTER INC |
| Seller | CC PALO ALTO INC |
600 Sand Hill Rd Palo Alto Multifamily Investment
This 106-unit property sits in a top-tier neighborhood with average NOI per unit of $19,415, ranking 14th among 344 metro neighborhoods according to CRE market data from WDSuite.
This 106-unit property built in 2005 sits in an A+-rated neighborhood that ranks 5th among 344 metro neighborhoods, placing it in the top quartile nationally for overall performance. The location benefits from exceptional amenity density including 8.16 cafes per square mile (100th national percentile) and 53.06 restaurants per square mile (99th national percentile), supporting tenant retention through lifestyle convenience.
The neighborhood maintains 66.7% renter-occupied housing units, ranking 29th of 344 metro neighborhoods and reaching the 96th national percentile for rental tenure share. This high concentration of renters reinforces consistent demand for multifamily housing. However, current neighborhood-level occupancy sits at 81.4%, which has declined 6.5% over five years and ranks 340th of 344 metro neighborhoods, indicating potential absorption challenges that warrant careful lease management.
Demographics within a 3-mile radius show a affluent tenant base with median household income of $176,823, though population has declined 2.6% over five years. Forecasts project household growth of 28.3% through 2028, which could expand the renter pool and support occupancy recovery. High home values with a median of $1.6 million reinforce rental demand by keeping homeownership costs elevated, sustaining renter reliance on multifamily housing.
Median contract rents of $2,920 rank 125th among metro neighborhoods while reaching the 99th national percentile, reflecting the area's premium positioning. The rent-to-income ratio of 0.31 suggests manageable affordability for the target demographic, though this ranks 317th of 344 metro neighborhoods, indicating potential pricing pressure that requires monitoring for renewal strategies.
Safety metrics present a mixed profile requiring careful consideration. The neighborhood ranks 277th of 344 metro neighborhoods for overall crime, placing it in the 28th national percentile. Property offense rates of 11,643 per 100,000 residents rank 316th among metro neighborhoods, indicating elevated property crime that could impact tenant retention and insurance costs.
Violent crime rates show 269 incidents per 100,000 residents, ranking 282nd of 344 metro neighborhoods (16th national percentile). However, violent crime decreased 15.2% over the past year, ranking 164th of 344 metro neighborhoods for improvement trends. Investors should factor security considerations into operating budgets and tenant screening processes while monitoring ongoing crime trend improvements.
The property benefits from proximity to major technology and corporate headquarters that anchor regional employment and support professional renter demand.
- HP — technology headquarters (2.5 miles) — HQ
- Hewlett Packard Enterprise — technology headquarters (2.5 miles) — HQ
- Robert Half International — staffing services headquarters (2.6 miles) — HQ
- Facebook — technology headquarters (3.1 miles) — HQ
- Tesla — automotive & technology headquarters (3.5 miles) — HQ
This 2005-vintage property offers exposure to Silicon Valley's premium rental market with strong NOI fundamentals, generating $19,415 per unit annually and ranking 14th among 344 metro neighborhoods. The location provides exceptional amenity access and proximity to major technology employers, supporting tenant appeal among high-income professionals. While neighborhood occupancy has softened to 81.4%, demographic forecasts project 28.3% household growth through 2028, potentially expanding the renter pool and supporting occupancy recovery.
The property's 19-year vintage positions it for potential value-add opportunities through unit upgrades and amenity enhancements, particularly given the premium rent environment where median contract rents reach $2,920. High home values exceeding $1.6 million reinforce rental demand by maintaining elevated ownership costs, though investors should monitor crime trends and occupancy patterns that currently lag metro averages.
- Strong NOI performance of $19,415 per unit ranks top 5% among metro neighborhoods
- Premium location with 96th percentile national ranking for rental tenure share
- Proximity to major technology headquarters supports professional tenant demand
- Value-add potential through 2005 vintage requiring strategic capital improvements
- Risk considerations include below-average occupancy trends and elevated crime metrics requiring active management