Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development Backs $88M All-Electric Multifamily Project in Davis, California

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), headquartered in Tokyo, has committed up to JPY 2.7 billion — roughly $18 to $19 million — in equity to support the development of The Lumberyard, an $88 million, 239-unit all-electric multifamily project in downtown Davis, California. The investment was approved by Japan's Minister of Land, Infrastructure, Transport and Tourism on June 15, 2026.

JOIN is co-investing alongside Kyuden Urban Development America, LLC (KUDA), a wholly owned subsidiary of Kyushu Electric Power Company's U.S. arm, and The Michaels Organization, a New Jersey-based developer and property manager. Tatsuhiko Takesada serves as President and CEO of JOIN, while John J. O'Donnell is CEO of The Michaels Organization.

Project Overview: The Lumberyard in Downtown Davis

The Lumberyard is situated on the former Hibbert's Lumberyard and Hardware Store site at the intersection of G Street and 5th Street in downtown Davis — a core infill redevelopment site adjacent to the Union Pacific rail line. The five-story, Type III wood-frame mid-rise building will encompass approximately 225,000 square feet of mixed-use space, including 239 apartments and ground-floor commercial and community-serving retail. The unit mix spans studios, one-, two-, three-, and four-bedroom layouts, with a total of 316 beds, reflecting a combination of conventional apartments and student-oriented, by-the-bed leasing.

At an $88 million total development cost, the project implies a cost of approximately $368,000 per unit and roughly $390 per square foot — metrics consistent with high-cost, urban infill, mid-rise student housing construction. The development is expected to achieve LEED certification.

Groundbreaking took place on September 1, 2026, with Davis Mayor Donna Neville and city officials in attendance. Completion is targeted for June 2028. BDE Architects is serving as the project architect, and Brown Construction is the general contractor.

Affordability and Decarbonization Goals

The Lumberyard includes an affordability component, with 5% of units — approximately 12 apartments — reserved for households earning up to 50% of Area Median Income. The project is designed as fully all-electric, incorporating energy-efficient appliances and systems that JOIN and Kyushu Electric Power Company describe as an extension of decarbonization expertise developed in Japan.

Beyond housing units, the development will deliver bicycle parking facilities, pedestrian-friendly infrastructure, and a public paseo along the railroad tracks connecting the site to the surrounding downtown. These features align with Davis's urban planning priorities and its identity as a bicycle-oriented, sustainability-focused city.

JOIN stated that the project is expected to support the establishment of an operational base in the United States for the participating Japanese companies, while also providing a platform to deepen their knowledge of all-electric housing in the American market — experience the firms intend to apply to future U.S. business initiatives.

Strategic Alignment with Japan's Infrastructure Export Policy

The investment is explicitly framed within Japan's Infrastructure System Overseas Promotion Strategy 2030, approved by the Infrastructure Strategy Council on December 24, 2024. That policy aims to advance global decarbonization and green growth through the deployment of Japanese technologies and expertise in overseas markets. JOIN's participation in The Lumberyard represents one application of that mandate, channeling Japanese capital and technical know-how into a U.S. urban housing project with measurable ESG characteristics.

Kyushu Electric Power Company, headquartered in Fukuoka, is participating through its U.S. subsidiary structure via KUDA. The Michaels Organization brings domestic development, asset management, and property management capabilities to the partnership.

Davis Housing Market Context

Davis faces a persistent housing shortage, particularly for students and residents affiliated with the University of California, Davis. The city's rental vacancy rate stands at approximately 3.5%, reflecting a constrained supply environment that has kept demand for new housing elevated. The Lumberyard is positioned to serve both the student population and the broader Davis rental market, targeting the university community and general residents with a walkable, downtown location.

The project's mixed-use program — combining market-rate and affordable apartments, ground-floor retail, and community amenities — is designed to support the city's broader urban development objectives while addressing the housing gap that local officials have identified as a priority.

Sources

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development — Official Announcement