Flow, the residential real estate company launched by WeWork co-founder Adam Neumann, has completed an acquisition in downtown San Jose that marks its first move into California and the broader West Coast. According to the Silicon Valley Business Journal, Flow purchased The Fay, a newly built residential tower at 10 E. Reed St., for $175 million.
The property, located at the corner of Reed and Market streets, adds a significant multifamily asset to Flow’s portfolio. The Fay comprises 336 apartments, positioning the company with immediate scale in downtown San Jose’s growing residential market. The acquisition is structured as a joint venture, with Flow partnering with local developer ASJ Development on the transaction.
ASJ Development, led by Andrew Jacobson and Gary Dillabough, has participated in multiple residential projects in downtown San Jose, bringing local development experience to the partnership. Their involvement aligns a locally active developer with Flow’s operating platform as the asset transitions under new ownership.
Neumann described The Fay as one of the strongest new residential properties in a city where demand for quality housing continues to increase. He characterized the tower as closely aligned with the type of multifamily assets Flow is targeting and with the type of urban markets where the company seeks to expand its presence.
As part of the acquisition, Flow plans to rebrand The Fay and integrate its operating approach at the property. The company intends to introduce its technology platform, on-site community programming, and sustainability-focused design and operations to the building. These changes are expected to shape the property’s identity and resident experience under the Flow brand.
The transaction underscores Flow’s expansion strategy from its initial markets into major West Coast cities, using sizable multifamily properties as entry points. By pairing its platform with a local development partner familiar with downtown San Jose, Flow is moving directly into an established residential corridor within the city.
While specific details about financing or future capital improvements were not disclosed, the purchase price and unit count position this acquisition as a meaningful investment in downtown San Jose’s apartment inventory. The deal also increases institutional-style ownership participation in the area’s residential high-rise stock, with Flow signaling its intention to be an active long-term operator in the market through this first California acquisition.
