Kennedy Wilson Acquires 312-Unit One South Market in Downtown San Jose for $176 Million

By Multifamily Newsroom™

Kennedy Wilson has closed on the acquisition of One South Market, a 312-unit multifamily community in downtown San Jose, California, for $176 million. The transaction was completed through a three-party joint venture with Hulic Co., Ltd. and Fuyo General Lease (USA) Inc.

The deal represents Kennedy Wilson's fifth joint venture with Hulic and its first partnership with Fuyo General Lease (USA) Inc., according to the company.

One South Market is a high-rise community built in 2015, located adjacent to San Pedro Square in downtown San Jose. The property's residential units average approximately 907 square feet. The community also includes 6,534 square feet of fully leased ground-floor retail space.

The property provides residents with access to downtown San Jose's dining, entertainment and employment centers. Major employers in the area include Adobe, Zoom and the Big Four accounting firms. The location offers access to Diridon Station, regional freeways and San Jose Mineta International Airport.

"Our acquisition of One South Market is an exciting milestone for Kennedy Wilson as we build on our longstanding partnership with Hulic and establish our first partnership with Fuyo General Lease," said Kurt Zech, President of Kennedy Wilson's Multifamily division. "One South Market offers exceptional long-term fundamentals, driven by its prime downtown location, strong employment base and limited new multifamily supply. With its proximity to major employers, transit and the broader Silicon Valley technology ecosystem, the property provides a unique opportunity to invest in a high-quality asset in one of the country's most dynamic markets."

Downtown San Jose is positioned within Silicon Valley's technology ecosystem, with employers including Adobe, Zoom, Nvidia, Broadcom, Cisco and Samsung.

"We are delighted to make this investment alongside Kennedy Wilson and Hulic, marking our first joint venture collaboration with both companies in North America," said Hiroyuki Motoshita, Managing Executive Officer, Real Estate Department at Fuyo General Lease Co., Ltd.

"We are pleased to have our fifth joint venture investment with Kennedy Wilson and to partner with Fuyo General Lease for the first time," said Sohei Okuno, Managing Officer, General Manager of Global Investment Department at Hulic Co., Ltd.