SAN JOSE \u2014 Real estate executives who purchased a downtown San Jose housing tower that will include affordable apartments have added an executive behind WeWork and Flow as one of its owners.<\/p>\n
Adam Neumann, who helped launch WeWork and Flow, is teaming up with Andrew Jacobson and Gary Dillabough to lead the ownership group for The Fay<\/a>, a 23-story, 336-unit tower at 10 East Reed St.<\/p>\n In May, the new ownership group paid $175 million for The Fay, located at East Reed and South First Street in downtown\u2019s SoFA district.<\/p>\n \u201cThis is great to see Adam Neumann involved with this,\u201d said Mark Ritchie, president of Ritchie Commercial, a San Jose-based real estate firm. \u201cWe\u2019re seeing some New York City money coming into San Jose.\u201d<\/p>\n Neumann, Jacobson, and Dillabough launched a program to set aside 197 units for middle-income households<\/a> as part of a city program to create more affordable housing in San Jose.<\/p>\n The effort, called LIVE (Lower Income Voucher and Equity), would create a subsidy for units to make them more affordable for middle-income workers. Interest in the affordable apartments<\/a> has already begun to emerge as people attempt to sign up for the program.<\/p>\n Initial move-in dates are scheduled for August, city officials said.<\/p>\n Officials said the idea of the affordable housing program is to help teachers, police officers, firefighters, city workers, and other public servants live closer to where they work. Preferences will be given to people in these fields, but the units will also become available to the public at large.<\/p>\n \u201cIt\u2019s a surprise resurrection for Neumann in San Jose, but people who are able to raise money have the ability to do that,\u201d said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use and planning consultancy. \u201cThe good news is Neumann is investing in San Jose like he has in the past. Hopefully, what they\u2019re attempting to do at The Fay will work out for San Jose.\u201d<\/p>\n Neumann co-founded WeWork, a co-working and shared office space service. In 2019, Neumann was ousted as chief executive officer following a botched initial public offering for the company.<\/p>\n In 2022, Neumann founded Flow, a residential real estate firm that aims to revolutionize the apartment rental experience, especially for younger tenants.<\/p>\n