This paper investigates a precoding method in downlink multiuser multiple-input multiple-output (MIMO) transmission with multiple base station (BS) cooperation, where each user device basically feeds back the instantaneous channel state information (CSI) to only the nearest BS, but the users near the cell edge additionally feedback the instantaneous CSI to the second nearest BS among the cooperating BSs. Our precoding method is categorized as a form of multi-cell processing (MCP) [5], in which the transmission information to a user is shared by the cooperating BSs in order to utilize fully the degrees of freedom of the spatial channel, and is based on block diagonalization of the channel matrix. However, since some elements of the channel matrix are unknown, we allow partially non-orthogonal transmission. More specifically, we allow inter-user interference to users with limited instantaneous CSI feedback from the channel where the instantaneous CSIs of those users are not obtained at the BSs. The other sources of inter-user interference are set to zero based on the block diagonalization of the channel matrix. The proposed method more efficiently utilizes the degrees of freedom of the spatial channel compared to the case with full orthogonal transmission at the cost of increased inter-user interference. Simulation results show the effectiveness of the proposed method compared to the conventional approaches, which can accommodate the partial CSI feedback scenario, from the viewpoints of the required transmission power and achievable throughput.