Sumitomo Realty & Development has acquired the former Hotel Floracion Aoyama in Omotesando and plans to redevelop the site, although details on the future project have yet to be announced. Demolition of the 3 ~ 6 storey building is expected to take place between March and August.
The 5,700 sqm site is a 5 minute walk from Omotesando Station. A freehold land parcel of this size and this close to Omotesando Station is incredibly rare.
A block of land across the street had a government assessed land value (chika-koji) of 2,200,000 Yen/sqm in 2017, up 7.32% from 2016 and up 35.8% from 2012. Over the past 5 years, land values at this survey site have increased by around 7 ~ 8% per annum, which is still well below the 25 ~ 42% annual increases seen between 2006 and 2008.
The Hotel Floracion Aoyama (previously the Tokyo Aoyama Kaikan) was built in 1970 by the Japan Mutual Aid Association of Public School Teachers. Given the age of the hotel and the fact that it was built to the old earthquake codes (pre-1981), part of the structure required retrofitting and a refurbishment. However, the necessary funds to repair the building could not be raised and the hotel closed in December 2014. It has been boarded up for the past three years.
Source: The Kentsu Shimbun, February 21, 2018.