Downtown San Jose Sees $380M in Sales for Two Multifamily Towers

Two high-rise apartment buildings in downtown San Jose have been acquired in separate transactions totaling $380 million. A joint venture between Coastal Ridge Real Estate and Brookfield purchased The Grad, a 1,039-bed student housing tower, for $204 million. This 19-story Class-A building, completed in 2020 and located near San Jose State University, was fully occupied at the time of sale. Its previous owners, Amcal and Swenson, faced challenges refinancing the property due to high interest rates, leading to the sale.

Separately, a three-party joint venture including Kennedy Wilson, Hulic Co., and Fuyo General Lease (USA) Inc. acquired One South Market, a 312-unit apartment tower, for $176 million. The 23-story building, completed in 2015, was sold by Lakevision Capital. The per-unit price of $564,000 for One South Market surpassed the area’s five-year average. These transactions underscore the strong demand for high-quality multifamily and student housing assets in Silicon Valley, despite broader market financing pressures. Developers and investors should note the continued value placed on prime downtown locations with limited new supply.