SAN JOSE — The shopping spree for South Bay housing hubs has widened with a $300 million-plus purchase of a West San Jose apartment complex for a price that’s on the high end for current values.
KKR Real Estate, a New York City-based subsidiary of KKR & Co., bought the 636-unit Lynhaven for $346.5 million in an all-cash deal, documents filed on Sept. 2 with the Santa Clara County Recorder’s Office show.
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.
The per-unit price for Lynhaven was $544,800 – 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. were both well above average prices in the South Bay.
The prices paid could lead to higher rents, and to a tighter market for renters. 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.