Lone Star Funds purchases 1,166‑unit residential portfolio in central Tokyo

Lone Star Funds, through an affiliate of its Real Estate Fund VII, has completed the acquisition of a 1,166‑unit multifamily residential portfolio in central Tokyo’s Shinkawa and Tsukuda sub‑markets of Chuo Ward. The assets consist of a 35‑story, 505‑unit tower and a campus of five buildings that provide 661 residential units and nine retail tenants. The properties sit along a waterfront area with easy access to central business districts and nearby rail stations.

Lone Star plans a targeted capital‑expenditure program to upgrade amenities and improve the properties, aiming to retain existing tenants, attract new renters and boost net operating income. The transaction underscores the firm’s confidence in Japan’s residential real‑estate fundamentals and its long‑standing presence in the market. Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, said the deal demonstrates the firm’s continued commitment to Japan, while Executive Chairman Mitsuo Matsunaga highlighted the strong demand and growth potential in central Tokyo.