| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 84th | Best |
| Demographics | 21st | Poor |
| Amenities | 46th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1640 Hermocilla Way, San Jose, CA, 95116, US |
| Region / Metro | San Jose |
| Year of Construction | 1999 |
| Units | 100 |
| Transaction Date | 2015-07-27 |
| Transaction Price | $13,596,500 |
| Buyer | HERMOCILLA LLC |
| Seller | THUNDERBIRD ASSOCIATES |
1640 Hermocilla Way San Jose Multifamily Opportunity
Neighborhood occupancy is exceptionally tight and renter demand is deep, according to WDSuite’s CRE market data, supporting stable leasing for a 1999-vintage, 100-unit asset in San Jose’s Urban Core.
This Urban Core location in San Jose benefits from strong renter fundamentals. The surrounding neighborhood’s occupancy is at the top of the metro (ranked 1 out of 344 neighborhoods), indicating limited available units and historically steady absorption at the neighborhood level rather than the property. Renter-occupied housing is prominent (95th percentile nationally), signaling a wide tenant base and durable multifamily demand.
Amenity access is competitive among San Jose–Sunnyvale–Santa Clara neighborhoods, with cafes (ranked 22 of 344) and groceries (ranked 43 of 344) supporting daily convenience and lease retention. While park and pharmacy counts rank low within the metro, the broader service mix and urban connectivity typically reduce reliance on single amenity types for resident satisfaction.
Rent levels in the neighborhood place it in the top quartile nationally, and elevated home values (94th percentile) within the metro context point to a high-cost ownership market that tends to reinforce reliance on multifamily housing. With a rent-to-income profile near the lower national percentile, operators should expect some affordability pressure and plan for proactive lease management to sustain pricing power and retention.
Within a 3-mile radius, recent trends show modest population contraction alongside relatively steady household counts, with forecasts indicating smaller household sizes and an increase in total households through the next five years. For investors, this suggests a stable to expanding renter pool even as population levels adjust, which can support occupancy stability and consistent leasing. The asset’s 1999 construction is newer than the neighborhood average (1970), offering competitive positioning versus older local stock while still leaving room for targeted modernization of interiors and building systems as part of a value-add strategy.
Safety indicators for the neighborhood are mixed and should be assessed carefully. Compared with the 344 neighborhoods in the San Jose–Sunnyvale–Santa Clara metro, the area’s overall crime rank sits in the lower tier (ranked 255 of 344), which is below the metro average. Nationally, the neighborhood falls into lower safety percentiles for both property and violent offenses, indicating elevated incident levels compared with many U.S. neighborhoods.
That said, recent year-over-year trends show improvement in violent offenses (stronger national percentile for improvement), while property-related activity has moved higher. For investors, the takeaway is to underwrite with prudent security and operational considerations, benchmark insurance and loss-prevention assumptions against comparable Urban Core assets, and monitor trend lines rather than relying on single-period snapshots.
The employment base nearby skews toward technology and corporate services, supporting workforce housing demand and commute convenience for renters. Key employers within a short drive include software, digital payments, semiconductors, electronics distribution, and telecom operations.
- Adobe Systems — software (2.5 miles)
- Paypal Holdings — digital payments (4.4 miles) — HQ
- Qualcomm — semiconductors (4.9 miles)
- Avnet — electronics distribution (5.1 miles)
- Verizon — wireless telecom (5.3 miles)
1640 Hermocilla Way aligns with San Jose’s Urban Core dynamics where neighborhood occupancy ranks first out of 344 metro neighborhoods, supporting leasing stability at the neighborhood level. Elevated home values and a strong renter-occupied share point to durable multifamily demand and depth of the tenant base. The 1999 vintage is newer than the neighborhood average, giving the asset relative competitiveness versus older stock while preserving value-add potential through targeted modernization. Based on CRE market data from WDSuite, rent levels are high on a national basis, reinforcing pricing power but warranting active affordability and retention management.
Within a 3-mile radius, forecasts indicate smaller household sizes and an increase in total households over the next five years, which can expand the renter pool despite modest population drift. Investors should weigh this demand backdrop against safety considerations and income-to-rent pressure, calibrating operations and capital plans accordingly.
- Neighborhood occupancy ranked 1 of 344 supports steady leasing and low downtime.
- High renter-occupied share and elevated home values reinforce multifamily demand depth.
- 1999 vintage offers competitive positioning with targeted value-add and systems modernization potential.
- 3-mile outlook shows more households and smaller sizes, supporting renter pool expansion.
- Risks: below-metro safety standing and rent-to-income pressure require prudent underwriting and retention strategy.