Andrew Jacobson And Gary Dillabough Acquire Fay Residential Tower In San Jose For $175M

The asset involved in this transaction is a 336-unit multifamily residential tower located at 10 East Reed Street in San Jose, CA. It was sold for $175 million, which translates to a price per unit of $520,833. The property was completed in 2024 and has experienced issues related to default, particularly with financing from Madison Realty Capital.

Summary of transaction details:

• Property Type: Multifamily
• Transaction Amount: $175,000,000
• Units: 336
• Price Per Unit: $520,833
• Buyer: Andrew Jacobson & Gary Dillabough; Adam Neumann - Flow
• Seller: Josh Zegen - Madison Realty Capital

The transaction was initiated by a buyer group led by developers Andrew Jacobson and Gary Dillabough, who are collaborating with Adam Neumann’s Flow on a redevelopment plan. This plan includes rebranding the tower, activating retail space, and integrating nearly 200 affordable housing units as part of a local city initiative.