Multifamily Tax Credit
Courtyard at Bay Road
1730 Bay Rd, East Palo Alto, CA 94303
Listing Price: $19,000,000
Investment Overview
Courtyard at Bay Road is a 77-unit affordable housing community located in the heart of Silicon Valley—minutes from downtown Palo Alto, Stanford University, and the global headquarters of Meta, Google, and Tesla. Built in 2006, the property offers over 148,000 square feet of rentable area on a 1.6-acre site, combining modern construction with long-term affordability in one of the most supply-constrained and highest-barrier-to-entry markets in the country.
The subject property serves households earning between 30% and 60% of area median income, providing a mix of one-, two-, three-, and four-bedroom units. Residents benefit from proximity to major job centers, transit connections, and the Bay Trail, while just a short drive from Stanford Shopping Center and downtown Menlo Park. The property is 96% occupied, with in-place rents well below market comparables, positioning it for stable long-term performance and future upside through compliance-safe rent growth.
East Palo Alto has undergone substantial reinvestment over the last decade, transitioning from a historically under-served community into one of the most active redevelopment corridors in the Bay Area. With new mixed-use projects, improved retail, and transit access, the neighborhood has become a strategic focus for institutional affordable housing investors.
The property has a LIHTC Regulatory Agreement on it that must be followed. The right buyer will see an opportunity to purchase a 2006 Construction Project, with strong upside in rents, long-term affordability for residents, in an area with fast-growing incomes that will continue to push rents up. Furthermore, with the Big Beautiful Bill passed this summer, there is a strong possibility of re-syndicating the property with a fresh round of Tax Credits to upgrade the physical plant and push down operating costs.
Courtyard at Bay Road
Investment Highlights
- High-Barrier Silicon Valley Location: Situated just across U.S. 101 from downtown Palo Alto, the property sits in one of the most affluent and land-constrained housing markets in the United States.
- Surrounded by major employers including Stanford University, Meta, and Google.
- Modern 2006 Construction: Contemporary design and durable materials reduce ongoing capital needs compared to older East Palo Alto assets built in the 1960s–70s.
- Strong Occupancy & Proven Performance: 96% occupancy with consistent collections, producing a current NOI of approximately $734,000.
- Significant Rent Cushion vs. Market: Market-rate comparables in the immediate area.
- Attractive Financing Environment: The offering supports new debt financing at competitive rates, with potential to improve cash-on-cash returns through operational optimization and management efficiencies.
- Institutional-Scale Asset with Community Impact: 148,924 SF of affordable housing in the center of Silicon Valley—a rare combination of size, mission alignment, and long-term yield stability.
- Strong Unit Make Up
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Listing Price: $19,000,000
Investment Highlights
- High-Barrier Silicon Valley Location: Situated just across U.S. 101 from downtown Palo Alto, the property sits in one of the most affluent and land-constrained housing markets in the United States.
- Surrounded by major employers including Stanford University, Meta, and Google.
- Modern 2006 Construction: Contemporary design and durable materials reduce ongoing capital needs compared to older East Palo Alto assets built in the 1960s–70s.
- Strong Occupancy & Proven Performance: 96% occupancy with consistent collections, producing a current NOI of approximately $734,000.
- Significant Rent Cushion vs. Market: Market-rate comparables in the immediate area.
- Attractive Financing Environment: The offering supports new debt financing at competitive rates, with potential to improve cash-on-cash returns through operational optimization and management efficiencies.
- Institutional-Scale Asset with Community Impact: 148,924 SF of affordable housing in the center of Silicon Valley—a rare combination of size, mission alignment, and long-term yield stability.
- Strong Unit Make Up
Investment Overview
Courtyard at Bay Road is a 77-unit affordable housing community located in the heart of Silicon Valley—minutes from downtown Palo Alto, Stanford University, and the global headquarters of Meta, Google, and Tesla. Built in 2006, the property offers over 148,000 square feet of rentable area on a 1.6-acre site, combining modern construction with long-term affordability in one of the most supply-constrained and highest-barrier-to-entry markets in the country. The subject property serves households earning between 30% and 60% of area median income, providing a mix of one-, two-, three-, and four-bedroom units. Residents benefit from proximity to major job centers, transit connections, and the Bay Trail, while just a short drive from Stanford Shopping Center and downtown Menlo Park. The property is 96% occupied, with in-place rents well below market comparables, positioning it for stable long-term performance and future upside through compliance-safe rent growth. East Palo Alto has undergone substantial reinvestment over the last decade, transitioning from a historically under-served community into one of the most active redevelopment corridors in the Bay Area. With new mixed-use projects, improved retail, and transit access, the neighborhood has become a strategic focus for institutional affordable housing investors. The property has a LIHTC Regulatory Agreement on it that must be followed. The right buyer will see an opportunity to purchase a 2006 Construction Project, with strong upside in rents, long-term affordability for residents, in an area with fast-growing incomes that will continue to push rents up. Furthermore, with the Big Beautiful Bill passed this summer, there is a strong possibility of re-syndicating the property with a fresh round of Tax Credits to upgrade the physical plant and push down operating costs.
Exclusively Listed By
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