SAN JOSE — An eye-catching San Jose housing tower has been bought at a robust price, marking the third deal this month for a downtown high-rise, possible signals of investor confidence about the city’s downtown.
Beverly Hills-based real estate firm Kennedy Wilson, through an affiliate, paid $176 million for the apartment hub at 1 S. Market St. in downtown San Jose, documents filed on Oct. 13 in Santa Clara County show.
The 23-story, 312-unit tower, which is noteworthy for its blue hues, was sold by an affiliate of Lakevision Capital, which is a unit of a real estate firm based in China.
In June 2020, a Lakevision Capital affiliate paid $175 million for One South Market, just months after coronavirus-linked business shutdowns began to roil real estate markets and the broad economy.
This means the tower’s value has barely budged in six years.
On the other hand, the deal for the residential hub came in at a price point that suggests per-unit values have begun to stabilize and even head higher for apartments in the South Bay.
The firming prices, however, also mean that apartment rents are poised to trend higher, an outcome that could squeeze renters’ pocketbooks.
The deal for One South Market is 46.5% higher than the average per-unit price of $385,000 for completed apartment hub sales in the South Bay as estimated by commercial real estate firm Marcus & Millichap.
In recent weeks, San Jose towers have become magnets for buyers, an indication that real estate investors are seeing an upside in the downtown economy.
The Grad, a 260-unit apartment tower at 88 E. San Carlos St., was bought for $204.8 million, or roughly $787,500 per room, in a deal that was completed Oct. 6.
On Oct. 8, a three-building office campus at 1, 55 and 99 Almaden Blvd. that’s anchored by the world headquarters of Zoom Communications was bought for $82 million.
One South Market, a 23-story residential tower at 1 South Market Street in downtown San Jose, seen on Oct. 13, 2026. (George Avalos/Bay Area News Group)