A 50% quasi co-ownership share in the ARGYLE aoyama on the corner of Aoyama and Gaien-Nishi streets in central Tokyo has been acquired by the Japan Real Estate REIT for 23.9 billion Yen (approx. US$175 million). The building is fully leased and the cap rate is 2.9%.

The 20-story, 90-meter tall building is a 2-minute walk from Gaienmae Station. The corner location was previously home to the Kisho Kurokawa-designed Aoyama Bell Commons building that had been built in 1976. In 1985 the building and land was purchased by a Japanese life insurance company for 24 billion Yen in what was the largest real estate sale to have ever taken place at that time. In 2012 it was sold to a US-based fund and a Japanese real estate investment firm under a joint venture. Mitsubishi acquired the property in early 2015 and demolished the building in 2016. The new mixed-use building was completed in 2020. A floor-area ratio allowance was granted to the project, increasing the FAR from 675% to 850%.

The first two floors contain retail and restaurants. Office space is located on floors 5 ~ 15, with the 42-room THE AOYAMA GRAND HOTEL located on floors 16 to 20. Standard office floor plates are around 250 tsubo (826 sqm, or 8,890 sq.ft), with 2.8-meter ceiling heights. WeWork is one of the office tenants. 

Located in the fashionable Kita Aoyama address, the neighborhood is filled with a mix of apparel, IT, and design-related companies. 

Source: Japan Real Estate Investment Corporation News Release, February 16, 2023.