CAVANA+ Azabudai
CAVANA+ Azabudai
High-End Residences in a Sought-After Tokyo Location
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About CAVANA + Azabudai
Location has been one of the prime selling points for CAVANA + Azabudai since Hines first acquired the building in 2023. The property is steps from the iconic Tokyo Tower in the Azabu area, home to global companies and embassies, making it a highly sought-after location for professionals and expats. The property is also close to the Tokyo Station area and the vibrant Roppongi entertainment district.
Originally built in 2017 as a serviced apartment building, Hines has transformed the property into 48 furnished rental units (including studios as well as one and two-bedroom apartments), with sizes about 10 square meters larger than typical rental apartments of each unit type in the market.
Furnished apartments, which are uncommon in Japan, have proven to be highly compatible with the needs of higher-income, professional tenants who may be temporarily stationed in Japan and also travel frequently.
Recently, a large complex of high-end shops and luxury condominiums opened nearby, further enhancing CAVANA + Azabudai’s appeal.
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Enhancing Property Value and Minimizing Vacancy Risk
From this project, Hines learned that providing a unique product that matches the needs of the area, combined with strategic ideas to enhance the property’s appeal, are keys to fostering value while minimizing vacancy risk. In fact, in just a few years, CAVANA + Azabudai has seen a strong uplift in rental demand and an increase in appraisal value.
Driving Growth in the Tokyo Multifamily Market
Hines led the transformation of the property into a furnished, high-end rental residence, strategically aligning it with surging demand for premium urban living options in a highly sought-after neighborhood.
The Hines Difference
There haven't been many multifamily assets available in such a premium location in Tokyo. In other words, CAVANA + Azabudai represented a differentiated investment opportunity that Hines was able to quickly identify and unlock through its local team. Overall, this project is a testament to Hines’ ability to understand local market dynamics and seize favorable opportunities as they present themselves.
Looking to the Future
Hines secured a leading co-living operator to lease part of the asset, which has helped to ensure stable, ongoing income while preserving upside for continued rental growth in the future.
Global Living Reimagined outlines a case for convincing rent growth in Japan.