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That area has seen a small amount of revitalization. That may actually be giving it too much benefit, though. A handful of home owners have remodeled their homes on the streets you mentioned, but has a long way to go. A couple of years ago I thought this area might really turn into something nice, but it hasn't happened yet.
This last summer, 5th st/86 had a nice bit of masonry and landscaping done and it looks pretty nice and Perry st, a couple blocks west of the streets you mentioned is a pretty nice street thats really adding charm to the downtown area. So there is potential.
If you are planning on buying and fixing up a place and waiting a bit, assuming others do the same, you may have a good plan. As it stands right now, however, Im not all that impressed with that area as far as living there. Not a bad area as far as crime or safety, just nothing special at all. Seems like it should have more charm than it does, but it doesn't.
For some reason, everyone whos interested in CR seems to want suburbia living and end up in the Meadows, Castlewood Ranch/Founders, even Crystal Valley where all the developments are. (Im in Founders)
If you end up here, I'd stay away from the southern end of Gilbert. That area seems to get more and more run down. If Castle Rock has a ghetto, this is it. Still not unsafe, but when I take a short cut thru here, I always think theres gotta be some meth houses around there.
The train track, btw, is right there, so it might be a problem. Its pretty frequent. But I cant really tell you how it effects living there, though.
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