On February 16, Bridgestone reported the sale of a company housing compound in Roppongi to an unnamed buyer for a staggering ¥63.4 billion (US$422 million) profit over its original book value. A private bidding process took place last year, drawing quite a bit of interest. The land had been originally held by the Bridgestone family since 1897. The traditional residence was destroyed in WWII air raids.
The 5,695 m2 site is located directly across the street from Tokyo Midtown, Ritz-Carlton and Hinokicho Park. The land is zoned as a Cat. 2 Mid/High-Rise Oriented Residential Zone with a floor area ratio (FAR) that maxes out at 300% and a building coverage ratio (BCR) of 60%. This zoning does not permit hotels or offices. There are also some slant regulations that might limit the potential building height. These slant regulations are evident in the design of neighboring buildings, including Park Mansion Hinokicho Koen located next-door.
The land price works out to be at least ¥11 million per square meter (US$6,800/sq.ft), or ¥36.8 million per tsubo. In developer speak, that’s around ¥12 million per tsubo per 100% of FAR.
The buyer’s future plans for the site have not been announced. If condos are developed on this site, they are going to command some high prices. Recent resale listings in the luxury condo next door are closer to ¥7 ~ 8 million per square meter (US$4,245 ~ 5,000/sq.ft) and the high-rise condo on the opposite side of the park has similar pricing.
This side of billionaire’s row is now all spoken for in terms of development but the northern side of the park has a few old condos that might be slated for redevelopment at some point in the future.
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