Raysum delivered an unparalleled premium residence with individual units exceeding 300 m² in floor area to the Tokyo market.
We initially acquired a newly built apartment with 17 units, each with a floor area of approximately 100 m², the standard size in Japan. After acquisition, we renovated the building and realigned the building to create seven rental units by removed the dividing walls between the units. The new units range in size from 200 m² to over 300 m². We did this because we felt there to be latent demand for units of that size in Shirokane Chojamaru, an area once home to samurai residences in the Edo era.
Young entrepreneurs active on the global stage are driving rents for luxury residences over the traditional norm.
Fifty prospective tenants viewed the units after completion and full occupancy was achieved five months after we started leasing. The asking rent far exceeded that of conventional luxury rental apartments. Demand for this new level of luxury was driven by young entrepreneurs in their 20s and 30s who work in central Tokyo.
We have persistently driven ourselves over the past few years to create a new market for premium luxury rental residences.
Our focus has been on creating demand for luxury rental apartments with over 200m² of leasable area.
This focus helped us identify a gap between supply and demand for these apartments in central Tokyo and to narrow down the target tenants. This enabled us to improve the accuracy of our offering. This project demonstrates our true value as a company that continues to create unique value propositions by focusing on social change and drawing our conclusions from our perception of the future.
Overview
| Name | Premium Residence Shirokane Chojamaru |
|---|---|
| Principal value enhancement method | Increase NOI |
| Other value enhancement method | Large-scale renovation |
| Age (at time of purchase) | Less than 1 year |
| Land area | Approx. 390 tsubos (1,289 ㎡) |
| Floor area | Approx. 650 tsubos (2,148 ㎡) |
| Leasable area | Approx. 600 tsubos (1,983 ㎡) |
| Volume area ratio (designated) | 200% |
| Number of floors | 3 floors above ground |
| Asset class | Residence |
| Purchase date | June 2019 |
| Sale date | August 2021 |
| Sale price | Between 2-5 billion yen |