Kennedy Wilson has formed a three-party joint venture with Hulic Co., Ltd. and Fuyo General Lease (USA) Inc. to acquire One South Market, a multifamily high-rise in downtown San Jose. The partnership purchased the 312-unit property for $176 million, adding a large, institutional-quality rental asset to the joint venture’s portfolio.
The transaction extends Kennedy Wilson’s long-running relationship with Hulic, marking their fifth joint venture together. It also introduces a new equity relationship with Fuyo General Lease, which is partnering with Kennedy Wilson for the first time on this acquisition. The deal structure underscores growing cross-border participation in U.S. multifamily assets, with both Japanese investors joining Kennedy Wilson in the capital stack.
One South Market was built in 2015 and is positioned adjacent to San Pedro Square in the heart of downtown San Jose. The location situates residents within walking distance of employment centers, dining, and entertainment options in the city’s core. The high-rise property also includes 6,534 square feet of fully leased ground-floor retail space, providing an additional income stream beneath the residential component.
Commenting on the acquisition, Kurt Zech, president of Kennedy Wilson’s Multifamily division, described One South Market as an important milestone for the firm. He highlighted the opportunity to both deepen its longstanding partnership with Hulic and launch its first collaboration with Fuyo General Lease. Zech cited the property’s prime downtown location, strong employment base, and limited new multifamily supply as key fundamentals supporting the investment.
Zech also noted that One South Market benefits from proximity to major employers, transit options, and the broader Silicon Valley technology ecosystem. According to his remarks, these factors underpin the property’s long-term appeal and align with the joint venture’s strategy of targeting high-quality multifamily communities in dynamic urban markets.
On the transaction side, CBRE’s Jon Teel represented the joint venture buyers. The involvement of a global brokerage firm reflects the institutional nature of the asset and the cross-border capital partners behind the acquisition. No additional transaction details, such as financing structure or seller identity, were disclosed in the source material.
