SAN JOSE — The shopping spree for South Bay housing hubs has widened with a $300 million-plus purchase of a San Jose apartment complex for a price that’s on the high end for current values.
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Lynhaven, a 636-unit apartment hub in West San Jose, has been bought for $346.5 million by a New York City-based real estate unit of global investment titan KKR & Co., according to public records.
A growing number of investors have begun to rush to snap up apartment hubs in the South Bay, with a heightened focus on multifamily residences in San Jose.
In the most recent South Bay apartment deal, an affiliate of KKR Real Estate bought the Lynhaven housing hub through an all-cash deal, documents filed on Sept. 2 with the Santa Clara County Recorder’s Office show.
The per-unit price for Lynhaven was $544,800. That’s 41.5% above the average $385,000 price per unit for apartments in the San Jose metro area as estimated by real estate firm Marcus & Millichap.
Similarly, the recent prices of $560,000 a unit for an apartment complex at 383 Stockton Ave. in downtown San Jose and $483,000 a unit for a residential hub at 1432 West San Carlos St. in San Jose near the mega malls were both well above the average prices in the South Bay.
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These prices suggest that buyers believe apartment rents in the properties they acquired are more likely to rise than turn flat or drop.
On the flip side of the supply and demand equation, however, renters might face a tight market in the South Bay.
Marcus & Millichap’s assessment lends credence to the optimism on the part of the new owners of apartments. Rents are expected to rise 4.4% during the course of 2026, Marcus & Millichap predicted.
“The average monthly rent will climb to $3,438, the highest in the nation,” Marcus & Millichap stated in a first-quarter report on the apartment market in Santa Clara County.
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