When The Fay opened in 2024, San Jose officials believed the 23-story, 336-unit high-rise could be transformative, not only by adding much-needed housing but also by boosting foot traffic near the southern gateway to downtown.
Instead, the housing development at the corner of Market and Reed Streets in the city’s swanky SoFA District faced high vacancy rates and bankruptcy, casting a shadow over other potential downtown projects.
San Jose is now turning to an innovative pilot program to help stabilize the financially distressed asset and restore investor confidence…