When we first started setting up network home directories and the optimum way to do it, Apple’s answer to how much could it handle was 150 concurrent users. You are pushing the envelope my friend with (according to my math based on your numbers) 165 potential clients attached at one server. Correct me if I am wrong. Bad setup having the authentication server also handle the home directories themselves. So basically you are bringing the server to its knees.
What I would do if I were you (and yes that means $$) is to purchase a couple more servers for that building and segment your users across those two servers. Use your current server as a master directory server that hands off the logins to their respective network home directory.
I am running OD here (1 master, 2 replicas, 16 home directory servers) in a central location which serve 11 buildings. Most of the servers hum along at 70-80% idle. If you want to email me and get more detail on my setup, feel free.
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