SAN JOSE — A high-profile apartment tower in San Jose has been bought by an alliance of real estate veterans, a purchase that ends its foreclosure ordeal and arrives on the heels of a pilot program to create affordable housing in the building.
The Fay, a downtown San Jose high-rise, has been bought for $175 million by a business entity led by real estate executives Andrew Jacobson and Gary Dillbough, documents filed May 27 at the Santa Clara County Recorder’s Office show.
Jacobson and Dillabough purchased the same 336-unit apartment hub where San Jose officials have formally kicked off a program designed to bring middle-income households to the tower by creating 197 affordable housing units in the building.
The acquisition also breaks up a cloud of uncertainty that had loomed over the building in the wake of a foreclosure by an affiliate of New York City-based Madison Realty Capital, the lender that took ownership of the tower in January 2026…