A 948-unit apartment community is poised to become the largest market-to-affordable conversion in California.
Standard Communities, a top affordable housing developer and investor, and The Vistria Group, a private investment firm, announced the acquisition of the Park Kiely development in San Jose.
The acquisition was completed in just 34 days, ensuring that the once market-rate property will be affordable housing for years to come. The total capitalization of the transaction is approximately $410 million.
“Park Kiely represents the largest single-asset transaction in Standard’s history. It tackles one of California’s greatest challenges, housing affordability, by creating hundreds of new affordable homes for families,” said Jeffrey Jaeger, co-founder and principal at Standard. “We are big believers that this type of housing is urgently needed in San Jose, especially given the artificial intelligence arms race and the deep affordability crisis across the Peninsula market. Park Kiely is a unique generational asset in San Jose, and preserving its affordability ensures long-term stability for residents.”
Standard and Vistria plan to invest over $19 million in building improvements and renovations to address deferred maintenance and upgrade common area amenities. The partnership will also invest in sustainability upgrades, such as water-saving measures, which are projected to save millions of gallons of water annually through the installation of energy-efficient toilets, sink aerators, and showerheads, according to officials.
Situated on 32 acres, Park Kiely features a unique site plan that fosters a dynamic and cohesive community. Amenities include a fitness center, two swimming pools and a spa, a splash pad, gas grills, a dog park, basketball and volleyball courts, a playground, a clubhouse, a business center, a media room, a game room, and expansive green spaces.
“We are proud to own this exceptional 948-unit community in San Jose and convert it into high-quality, mixed-income housing that will offer families long-term stability and opportunity in one of the least accessible housing markets in the country,” said Yusef Freeman, partner at Vistria Real Estate. “We set the record in San Mateo for the largest market-to-affordable conversion in the state of California last year, and we are thrilled to work with such strong partners in Park Kiely to add even more affordable units here in San Jose.”
The new owners said they plan to restrict the apartments to households earning up to 80% of the area median income. Standard and Vistria completed the transaction in partnership with nonprofit Housing on Merit.