Last week the Nikkei Real Estate Market Report announced that the rumored sale price of the Forest Hills retail and office building in Omotesando was 25 billion Yen (approx. US$165 million).
Back in April, the buyer, Rinnai Corporation, announced the acquisition for an undisclosed price. The gas appliance manufacturer plans to open a large showroom and customer experience center within the building.
Forest Hills was built in 1992 as an office / retail tenant complex comprised of two buildings – East and West. The combined GFA is 5,551 m2 (59,700 sq.ft) and the lot size is 1,843 m2. The property is a 6-minute walk from Omotesando Station and located in a low-rise neighborhood with apartments and stores.
The sale price works out to be approximately 4.5 million Yen per square meter (US$2,765/sq.ft) based on the GFA. In early 2021, another low-rise retail building down the street sold for 7.21 billion Yen, or around 3.7 million Yen per square meter based on the lettable area.
