Tokyo Building Acquires 290-Unit Existing Rental Residential Property in Scottsdale, Arizona, Expanding and Strengthening Overseas Investment Portfolio

Tokyo Building Co., Ltd. has acquired 'The Residences Kierland' (hereinafter 'the property'), a 290-unit rental residential property located in Scottsdale, Arizona, USA. This acquisition marks Tokyo Building's first investment in an existing rental residential property in the United States, aiming to diversify its overseas investment strategy and strengthen its revenue base. The project is being carried out as a joint venture with MacNaughton Inc. (headquartered in Honolulu, Hawaii, USA; CEO: Ian MacNaughton; hereinafter 'MacNaughton')—a major U.S. developer.

To date, Tokyo Building has primarily focused on real estate investment in the U.S. through new construction rental housing developments. With this acquisition, the company is entering the existing rental residential investment sector for the first time, thereby expanding its investment scope. The acquired property is a high-quality rental residence located in an area of Arizona known for its excellent convenience and living environment, with stable rental demand expected. Moving forward, partial renovation work will be carried out to enhance the property's value and further increase revenue. This project is being implemented as a joint venture with MacNaughton, a partner with extensive local experience, leveraging their expertise and network to achieve strong operational competitiveness.

【Key Points of This Release】

・ Tokyo Building, in partnership with major U.S. developer MacNaughton, has acquired 'The Residences Kierland,' a 290-unit rental residential property in Scottsdale, Arizona.

・ This project marks Tokyo Building's first acquisition of an existing rental residential property in the U.S., aimed at diversifying its overseas investment strategy and strengthening its revenue foundation.

● Property Overview

Property Name

The Residences Kierland

Location

15825 N 71st Street, Scottsdale, AZ

Land Area

Approx. 15,256 sqm

Total Leasable Area

Approx. 24,261 sqm

Structure and Scale

Reinforced concrete and partial wood construction, 6 stories

Total Units

290 units

Unit Layouts

1-Bedroom (210 units), 2-Bedroom (80 units)

Completion

2022

Amenities

Full-service spa (massage room, sauna, nail salon, etc.),

Pool, courtyard, outdoor lounge, indoor lounge, fitness gym

● Area Characteristics

The North Scottsdale area, where the property is located, is one of the most sought-after residential neighborhoods within the Phoenix metropolitan area of Arizona—a region known as the Sun Belt and home to one of the nation’s top-tier semiconductor industry clusters. This area boasts a robust employment base that supports high-income demand, anchored by major institutions such as Scottsdale Airpark—one of the largest business parks in the U.S.—the world-renowned Mayo Clinic, and the rapidly growing semiconductor cluster driven by large-scale investments from TSMC and AMD.

Additionally, the property is surrounded by outdoor commercial and dining facilities spanning approximately 5.4 hectares, including shopping centers such as Kierland Commons and Scottsdale Quarter. With its strong employment foundation, walkable commercial clusters, and high barriers to new supply, the property is positioned within one of the few 'live-work-play' communities in the Phoenix metropolitan area.

● Property Features

The property consists of 290 units, primarily featuring one- and two-bedroom layouts. The residences are designed as luxury residences, equipped with premium fixtures and appliances such as wine cellars and designer cabinets. Some units offer panoramic views of a nearby golf course and surrounding mountains. The property also features comprehensive shared amenities, including a full-service spa, pool, and fitness gym, clearly differentiating it from surrounding properties.

● Tokyo Building's Overseas Business Expansion

Tokyo Building has positioned the acceleration of asset-light business models—through overseas expansion and other initiatives—under its long-term vision 'Next-Generation Developer' targeting 2030. In its current medium-term management plan (2025–2027), the company plans to invest 110 billion yen in overseas operations. Currently, it is developing residential, office, and logistics properties in the U.S., Australia, Thailand, China, and other countries.

In the U.S.—one of its key investment countries—Tokyo Building re-entered the market in 2023 by establishing Tokyo Building US. Since then, it has partnered with experienced local firms to launch business operations, participating in a total of 14 projects to date (including this property: 12 rental residential projects and 2 logistics facilities). Going forward, the company aims to secure investment projects worth over 20 billion yen annually, further expanding its business operations.