Kennedy Wilson Provides $183M Construction Loan for Bay Area Multifamily Project

Tony Bennett once sang that he left his heart in San Francisco. 

Kennedy Wilson left a $183 million construction loan for a new two-building multifamily project (and maybe a little of its heart as well) nearby in the Bay Area. 

The lender just closed the financing for Alexan Icon, a 480-unit property spanning 4.1 acres at 1587 and 1588 San Mateo Avenue in South San Francisco, Commercial Observer can first report. 

The project is being developed by San Diego-based R&V Management — which is also the company behind the Alexan Convoy in San Francisco; Alexan Gateway in Long Beach, Calif.; Alexan Victoria Gardens in Rancho Cucamonga, Calif.; and the forthcoming Alexan Escondido in Escondido, Calif.

Alexan Icon consists of two seven-story buildings plus 560 parking spaces and will include 60 affordable units. Amenities are due to include a pool and spa, coworking spaces, club lounges and a speakeasy.  It also sits in a prime spot, just under two miles from life sciences hub Oyster Point — a 40-acre property housing 11.5 million square feet of biotech space. Developed by Greenland USA in 2016 and acquired by Kilroy Realty in 2024, Oyster Point is home to employers including Pfizer, Biogen, Genentech and Amgen. 

“The Bay Area remains one of the most resilient and high-demand rental markets in the country, and South San Francisco stands out with its strong employment base and sustained housing need,” said Thomas Whitesell, head of Kennedy Wilson’s debt investment group, adding that the firm is proud to continue its partnership with top-tier sponsors “on a community that pairs exceptional design with immediate access to some of the world’s leading biotech employers.”  

 The refinance continues Kennedy Wilson’s track record of providing multifamily construction loans in high-growth locations with $3.5 billion in originations closed in 2024 — including $1.5 billion in the fourth quarter alone. That volume included a $175 million loan for Kushner Real Estate Group’s Artwalk Towers luxury multifamily building in Jersey City, N.J. 

Kennedy Wilson’s platform has now sealed roughly $6 billion in senior loans for both multifamily and student housing developments across the country. In April, 

it announced the launch of a preferred equity and mezzanine investment platform in partnership with Tokyu Land U.S. Corp., focused on both multifamily and industrial assets. 

Most recently, the platform’s dollars are helping buildings to rise close to —as Tony Bennett said —“where little cable cars climb halfway to the stars.” 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.