On November 15, 2011, Japan Real Estate Investment Corporation purchased Akasaka Park Building and land for 60.8 billion Yen (779 million USD). The seller was Mitsubishi Estate. The building had an appraised value of 62.5 billion Yen in October, 2011.
The buyer believes that the image of Akasaka has improved over the years, particularly with the development of Akasaka Sacas just behind the building, and are expecting diversified demand from tenants into the future.
Akasaka Park Building was completed in 1993. The 30-storey building has a total floor space of approximately 97,317 sqm and a standard floor area of 2033 sqm. The total size of the land under the building is 14,198.20 sqm.
There are currently 22 tenants in the building and it is operating at a 99.7% occupancy rate. The net operating income is estimated to be 2.833 billion Yen/year (36.3 million USD). Part of the building includes residential apartments which are leased to Mitsubishi Estate who then subleases them to tenants.
Wet sprayed refractory coating materials containing asbestos were confirmed to be used in part of the building and work to remove or enclose them is underway. The new owner does not expect any environmental problems associated with the asbestos in the property.
“Notice on Acquisition of Domestic Real Estate”, Japan Real Estate Investment Corporation, November 14, 2011.
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