RAYSUM first identified the potential of Shimo-Kitazawa, a popular location where redevelopment is underway.
Shimo-Kitazawa, is located at an intersection of the Odakyu Odawara and Keio Inokashira Lines. Many schools are located in this area, and Tokyo’s busiest shopping areas of Shinjuku and Shibuya are just 10 minutes away.
RAYSUM had refrained from any projects in the area despite redevelopment around Shimo-Kitazawa Station, in conjunction with moving the Odakyu Line underground, being ongoing for some time.
The object of moving the Odakyu Line underground was to improve traffic conditions between the station’s north and south sides.
The area was constantly facing traffic jams prior to moving the train line underground because the north and south areas around the station were separated by a railroad crossing that always seemed to be closed. Consequently, redevelopment focused on facilitating vehicle movement between the two sides.
RAYSUM identified the value and potential for new tenant demand along Chazawa Dori, more than a 10-minute walk south of the station and slightly removed from the shopping area. Accordingly, we acquired an old multiuse building with commercial and residential components and launched a new project to build a new, spacious commercial building .
We have created a new destination that is fully occupied with high-end tenants. The area of Shimo-Kitazawa has always stood out along with.
Kitazawa and Daizawa as areas of Setagaya Ward that boast great access to the urban core of Tokyo.
Despite being close, the areait is a pleasant residential area with no tall buildings and an expansive blue skyscape. It was also once known as a location where wealthy Westerners sought to live in detached houses.
We focused on the area’s history, and by attracting a fitness gym, that offers innovative programs developed in the U.S. as the core tenant, along with other high-end tenants, we successfully achieved full occupancy for the building one month before its completion, thereby providing peace of mind to our client.
Overview
| Name | No.R Shimokitazawa |
|---|---|
| Principal value enhancement method | New development |
| Other value enhancement method | N/A |
| Age (at time of purchase) | N/A |
| Land area | Approx. 170 tsubos (561 ㎡) |
| Floor area | Approx. 440 tsubos (1,454 ㎡) |
| Leasable area | Approx. 370 tsubos (1,223 ㎡) |
| Volume area ratio (designated) | 300% |
| Number of floors | 4 floors above ground/1 basement floor |
| Asset class | Commercial |
| Purchase date | December 2020 |
| Sale date | December 2023 |
| Sale price | Between 2-5 billion |