Kennedy Wilson, Hulic and Fuyo General Lease (USA) Inc. Acquire San Jose's One South Market for $176M

BEVERLY HILLS, Calif. — Kennedy Wilson has closed on a three-party joint venture with Hulic Co., Ltd. and Fuyo General Lease (USA) Inc. to acquire One South Market, a 312-unit multifamily community in downtown San Jose, California, for $176 million, the firm announced Oct. 14. CBRE's Jon Teel represented the buyer in the transaction.

The acquisition is Kennedy Wilson's fifth joint venture with Hulic and its first partnership with Fuyo General Lease (USA) Inc. Kennedy Wilson serves as sponsor and general partner, with Hulic and Fuyo General Lease (USA) Inc. participating as equity capital partners.

One South Market Property Details

One South Market, located at 1 S. Market St., is a 23-story high-rise completed in 2015. It sits adjacent to San Pedro Square in the center of downtown San Jose. The property includes 312 residential units averaging approximately 907 square feet, along with 6,534 square feet of fully leased ground-floor retail.

The $176 million price equates to approximately $564,100 per apartment unit. Based on the average unit size, that works out to roughly $621 per residential square foot, excluding the retail component. The seller was an affiliate of Lakevision Capital, described as a unit of a China-based real estate firm.

According to Kennedy Wilson, the property offers walkable access to downtown San Jose's dining, entertainment and employment centers, including Adobe, Zoom and the Big Four accounting firms. It also provides access to Diridon Station, regional freeways and San Jose Mineta International Airport.

Partner Statements on the Joint Venture

"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."

Zech added that the property's proximity to major employers, transit and the broader Silicon Valley technology ecosystem provides an opportunity to invest in a high-quality asset in one of the country's most dynamic markets. Kennedy Wilson said the investment reflects its continued focus on multifamily assets in markets with major employment hubs and limited new housing supply. Employers in downtown San Jose's technology ecosystem include Adobe, Zoom, Nvidia, Broadcom, Cisco and Samsung.

Hiroyuki Motoshita, Managing Executive Officer, Real Estate Department at Fuyo General Lease Co., Ltd., said the company was delighted to invest alongside Kennedy Wilson and Hulic, marking its first joint venture collaboration with both companies in North America. "By enhancing the quality of life and convenience for local communities, this investment is expected to contribute to a sustainable society," Motoshita said.

Sohei Okuno, Managing Officer, General Manager of Global Investment Department at Hulic Co., Ltd., said Hulic is increasing international investment with trusted partners in areas where continued population and economic growth are expected. "We believe this investment in One South Market, a high-quality multifamily community in the heart of downtown San Jose, satisfies our criteria," Okuno said.

San Jose Multifamily Market Context

San Jose's apartment market has tightened. Marcus & Millichap forecasts metro vacancy of 3.5% by year-end 2026, which would be the market's second-lowest level in two decades and only 10 basis points above the 2021 trough. The same forecast projects average monthly rent of $3,438, a record high for the market.

New supply is also expected to be limited. The 2026 apartment-delivery pipeline is projected at about 10% of 2025's volume, with limited land availability, high home prices and reduced construction constraining competing projects. A separate market update places San Jose vacancy below 3.5%, with rent growth running at roughly three times the U.S. pace.

Local demand remains closely tied to high-paying technology employers, including those Kennedy Wilson cited in its announcement.

Kennedy Wilson's Multifamily Focus

Kennedy Wilson reported more than $36 billion of assets under management as of March 31, 2026, up from $24.5 billion two years earlier, according to S&P Global Ratings. Multifamily represented approximately 65% of the company's estimated annual net operating income from income-producing assets, and multifamily same-property NOI rose 2% year over year in the first quarter of 2026.

For the first quarter of 2026, the company reported $13.7 million of GAAP net income, $141.8 million of adjusted EBITDA and $50.5 million of adjusted net income. Baseline EBITDA was $94.1 million, down from $108 million a year earlier, reflecting lower property NOI after asset sales and recapitalizations, partly offset by higher investment-management fees.

Hulic is a publicly listed Japanese real estate company with a portfolio of office buildings, commercial properties and hotels located primarily in central Tokyo, and it invests internationally in markets including the United States and Asia. Fuyo General Lease positions real estate as a field for expanding its business domain through partnerships with other companies under its "Fuyo Shared Value 2026" medium-term management plan.

Sources

• Kennedy Wilson press release, Oct. 14, 2026: https://ir.kennedywilson.com/press-releases/2026/10-14-2026