United Urban Investment Corporation, a J-REIT, has paid 8.435 billion Yen (approx. US$56 million) for the 8th floor in Toranomon Hills Business Tower. The cap rate is 3.3%.
The acquisition includes a 3.05% share of the 10,000 m2 of land underneath the building. Leasing is done under a master lease and property management (MLPM) arrangement.
The 36-story office tower has a gross floor area of 167,000 m2 (1.8 million sq.ft) and was completed in 2020. It offers a direct connection to both Toranomon Hills and Toranomon Stations on the Ginza and Hibiya metro lines. The office floor plate is approximately 900.82 tsubo (2,977 m2), with 3-meter high ceilings. Based on the acquisition price, the price per square meter is approximately 2.83 million Yen/m2 (US$1,750/sq.ft).
In December 2020, United Urban paid 10 billion Yen to acquire the 10th floor in the neighboring Toranomon Hills Mori Tower at a 3.3% cap rate. The floor plate was 988.48 tsubo (3,267 m2), resulting in a price of 3 million Yen/m2.
Source: United Urban Investment Corporation News Release, January 30, 2024.
