Japanese investors bought $1.5B in NYC properties in past year

Mitsui Fudosan, Unizo leading investment at level not seen since 1990s

New York /
Sep.September 28, 2015 01:08 PM

Japanese investors are returning to New York’s commercial real estate market to an extent not seen since the country’s economic downturn of the 1990s, with Japan-based real estate companies having purchased $1.5 billion of property in the city in the past 12 months.

Deals like Unizo Holdings’ $247 million purchase of 370 Lexington Avenue, Tokyu Land Corp.’s acquisition of a stake in 425 Park Avenue and Mitsui Fudosan Group’s $259 million investment in Related Cos.’ 55 Hudson Yards are indicative of the trend, which display both the strength of the city’s real estate market and the return of Japanese buyers to New York.

It is a change of pace considering there was almost no Japanese real estate investment in the city until roughly three years ago, Okada & Co. president Christopher Okada told the Wall Street Journal. It also harks back to the 1980s, when a booming economy saw a broad range of Japanese banks and insurance companies enter the market.

But the nation’s economic downturn of the 1990s, known as the Lost Decade, took a toll on such investment. Mitsubishi Estate Co. suffered one of the largest losses with its stake in Rockefeller Center, handing the Midtown property over to lenders in 1995 after it filed for bankruptcy protection.

But Mitsubishi didn’t leave entirely – Rockefeller Group, a subsidiary of the company, is planning a number of ground-up projects in New York and New Jersey – and the firm has been joined by a wave of newer companies that have made Japan the fourth largest investor in Manhattan office space this year.

Mitsui Foduson also purchased a majority stake in Taconic Investment Partners’ ground-up rental development at 525 West 52nd Street, while Unizo paid $210 million in January for two office buildings near Madison Square Park and has spent $622 million on four buildings so far this year. [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
The construction loan for 200 Amsterdam Avenue could be in danger of default after a judge ordered the developers to deconstruct part of the building. (Credit: iStock)

Shock ruling could throw 200 Amsterdam loan into default

Shock ruling could throw 200 Amsterdam loan into default
666 Fifth Avenue, 1251 Sixth and Mitsui Fudosan America's John Chesterfield (Credit: Google Maps, Getty Images)

Law firm exiting 666 Fifth Ave amid $400M overhaul

Law firm exiting 666 Fifth Ave amid $400M overhaul
55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Here’s how much Facebook is paying at Hudson Yards
UWS tower may be in jeopardy following Supreme court zoning ruling

UWS tower may be in jeopardy following Supreme court zoning ruling

UWS tower may be in jeopardy following Supreme court zoning ruling
Apple in advanced talks for 55 Hudson Yards office space

Apple in advanced talks for 55 Hudson Yards office space

Apple in advanced talks for 55 Hudson Yards office space
SJP, Mitsui Fudosan land $460M in financing for UWS’s tallest development

SJP, Mitsui Fudosan land $460M in financing for UWS’s tallest development

SJP, Mitsui Fudosan land $460M in financing for UWS’s tallest development
Thor hires Mitsui Fudosan veteran to head US acquisitions team

Thor hires Mitsui Fudosan veteran to head US acquisitions team

Thor hires Mitsui Fudosan veteran to head US acquisitions team
Architecture review: New UWS tower won’t answer any prayers

Architecture review: New UWS tower won’t answer any prayers

Architecture review: New UWS tower won’t answer any prayers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...