Rendering of the Alexan Icon multifamily project in South San Francisco showcasing modern architecture and amenities.
Kennedy Wilson has secured a $183 million construction loan for the Alexan Icon multifamily project in South San Francisco. This development will provide 480 residential units, including 60 affordable units, on a 4.1-acre site. The project aims to address the housing demand in the Bay Area, offering various amenities and proximity to key employment centers, while reflecting a broader push to increase housing availability amidst rising rents.
Kennedy Wilson has successfully secured a significant construction loan of $183 million for the development of the Alexan Icon multifamily project located in South San Francisco. This extensive development aims to address the city’s pressing housing needs by offering numerous residential units in a prime area close to major employers.
The Alexan Icon project is set to occupy an area of 4.1 acres at 1587 and 1588 San Mateo Avenue and will comprise a total of 480 residential units. Developed by R&V Management from San Diego, the project features two seven-story buildings alongside 560 parking spaces. Additionally, it will include 60 affordable units to ensure a mix of housing options.
This new housing complex is poised to attract residents with its planned amenities, which encompass a pool and spa, coworking spaces, club lounges, and even a speakeasy. Strategically located less than two miles from the biotech hub of Oyster Point, the project is situated near some of the world’s leading biotech firms including Pfizer, Biogen, Genentech, and Amgen, making it an attractive option for potential renters.
The Bay Area remains a strong rental market with a robust employment base. The $183 million loan reflects Kennedy Wilson’s commitment to investing in multifamily construction, continuing a trend which has seen the company provide a total of $3.5 billion in originations in 2024, including $1.5 billion in the fourth quarter. To date, Kennedy Wilson has closed approximately $6 billion in senior loans dedicated to multifamily and student housing developments across the United States.
In addition to the Alexan Icon project, another noteworthy undertaking is taking shape at 88 Bluxome St. in San Francisco, where developers are proposing two high-rise apartment towers that will house 1,500 units. About 10% of these units are designated for very-low-income residents. This proposal aligns with new zoning changes aimed at promoting residential development in the city.
San Francisco has set an ambitious goal to construct 82,000 housing units by 2031 to alleviate a significant housing shortage. Currently, the city’s average rent has soared to $3,260 per month, which is nearly double the national average. Critics express concern over the limited number of construction projects and the slow pace of development. Only 1,200 units have been completed in 2024, spotlighting the urgent need for additional residential projects.
The office vacancy rate in San Francisco has begun to stabilize, resting at 25.8% in 2025, while apartment vacancies have decreased to 4.9%, marking the lowest level in a decade. Despite a 4.3% rent increase over the past year due to limited housing supply, the housing development landscape continues to grapple with various challenges, including rising interest rates and construction costs.
Other projects in the area include a 303-unit tower by Martin Building Co. at 1101-1123 Sutter St., which features 101 affordable units. While development continues, certain projects have faced hurdles due to city regulations forcing compliance with water recycling ordinances. Furthermore, the Midway Village redevelopment in Daly City seeks to provide 555 affordable units, yet it also encounters ongoing development challenges.
As demand for multifamily housing increases and the San Francisco area confronts housing shortages, projects like Alexan Icon will be critical in supplying necessary living spaces while addressing affordability needs.
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