Finding a moderately priced apartment in Silicon Valley is about to get easier. A quartet of San Jose multifamily properties, which recently fetched $74.6 million, will be converted into much-needed affordable housing units.
KDF Communities, a California-based apartment developer, plans to invest as much as $13.2 million into the complexes, which consist of 691 apartment units. KDF plans to conduct major interior and exterior renovations on all of the properties.
San Jose boasts one of the nation's tightest apartment markets. According to the National Association of Realtors, market vacancy was only 2.5% at midyear, one of the strongest markets in the country.
“San Jose is one of the most expensive areas to live in the country. With the constant need for more affordable housing, increasing our supply is a top priority for the City,” says Leslye Krutko, director of housing for the City of San Jose. “Developers such as KDF [are helping] San Jose exceed its goal to produce 10,000 affordable housing units, helping more of San Jose's working families to live and work here.”
The properties all require extensive work, says KDF principal Ray Harper. The average costs for the rehab will be roughly $13,750 per unit. The work will involve new flooring, roof repairs, new kitchen countertops, landscaping and the installation of new security.