Kennedy Wilson and Japanese Partners Buy 312-Unit San Jose Multifamily Property for $176M

Kennedy Wilson has teamed with two Japanese investment firms to purchase One South Market, a 312-unit residential high-rise in downtown San Jose, California, for $176 million. The partners are Tokyo-based Hulic Co. Ltd. and Fuyo General Lease (USA) Inc., the U.S. arm of Fuyo General Lease Co. Ltd. Locally based Lakevision Capital sold the property.

The building was completed in 2015 and sits next to San Pedro Square. Beyond the apartments, it includes 6,534 square feet of ground-floor retail that is fully leased. The transaction marks Kennedy Wilson's fifth joint venture with Hulic and its first with Fuyo. CBRE's Jon Teel represented the buyers.

The deal shows continued interest from Japanese capital in stabilized multifamily assets in Silicon Valley's urban core. For developers and lenders, it also reinforces that institutional buyers are pricing downtown San Jose rental towers with established retail income.