The deal is estimated to be worth at least JPY100bn ($965m), according to Reuters, citing five people with knowledge of the matter.
The deal is said to be closing as early as next week and follows Singapore sovereign wealth fund GIC backing out of a Meguro Gajoen buyout earlier this year.
Proceeds from the sale will help Lone Star to repay the roughly JPY85bn it owes a group of lenders in connection with the property, the sources said.
The Tokyo-based property includes two office buildings. Its tenants include Amazon.com’s Japanese operations.
Texas-based Lone Star launched a new $7bn vehicle in February after closing two multi-billion funds over the past year.
The firm’s real estate funds target distressed commercial real estate debt and equity products in the US, Western Europe and Japan.
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