Kennedy Wilson closes $176M San Jose apartment JV with Hulic and Fuyo

Kennedy Wilson closed a three-party joint venture with Hulic Co., Ltd. and Fuyo General Lease (USA) Inc. to acquire One South Market, a 312-unit apartment community in downtown San Jose, for $176 million. Connect CRE first reported the closing, which works out to roughly $564,000 a unit.

Kennedy Wilson's other covered apartment deal of the summer priced lower: the $139 million, 382-unit project with Shimizu in Sandy Springs works out to about $364,000 a unit. One South Market was built in 2015 and sits adjacent to San Pedro Square, with 6,534 square feet of ground-floor retail that is fully leased. The lower figure partly reflects that the Shimizu project is a conversion of a former UPS office site and still has to be built.

The joint venture is Kennedy Wilson's fifth with Hulic and its first with Fuyo General Lease, according to Connect CRE. Jaime Lee joined in August to lead capital formation, per PRED's records.

Kurt Zech, president of Kennedy Wilson's multifamily division, cited the property's downtown position, its employment base and "limited new multifamily supply." He also pointed to proximity to transit and what he called the broader Silicon Valley technology ecosystem.