Cushman & Wakefield Closes Major High-Street Sales in Myeongdong and Hongdae in Quick Succession… Driving the Retail Market’s Recovery
As the value of high-street retail assets in Seoul’s key commercial districts is being reevaluated, driven by a recovery in tourism demand and the K-content boom, Cushman & Wakefield Korea has successfully completed advisory work on two major sales in Myeongdong and Hongdae in quick succession.
Cushman & Wakefield Korea has successfully concluded its advisory role in the sale of the “Cheonghwi Building,” a hotel and retail mixed-use property located in the heart of Myeongdong, Seoul. With a total floor area of approximately 1,798 pyeong, the Cheonghwi Building houses the “Sotetsu Fresa Inn Seoul Myeongdong,” a 152-room hotel operating under a long-term lease agreement, on its upper floors, while the lower floors consist of retail spaces centered around K-Beauty flagship brands. The asking price was set significantly higher than the market rate per pyeong based on gross floor area, making this a transaction with a challenging price target even by market standards.
Cushman & Wakefield Korea positioned this asset as a “Core” mixed-use property offering both stability and growth potential by highlighting its irreplaceable prime location in Myeongdong, stable cash flow based on a long-term guaranteed lease, and the potential for increased hotel revenue-linked rent and retail rent driven by the recovery of the tourism market. As a result, a total of five companies participated in the bidding, and the sale was ultimately completed at a price that met the seller’s expectations.
During the same period, Cushman & Wakefield Korea also successfully completed the sale of “K-Square Hongdae,” located in Donggyo-dong, Mapo-gu, Seoul. Located in the immediate vicinity of Hongdae Station, K-Square Hongdae is a retail-focused mixed-use property comprising three basement levels, 12 above-ground floors, and a total floor area of approximately 3,372 pyeong. As the Hongdae commercial district experiences a boom driven by the K-content craze and a surge in foreign tourists, the value of high-street retail assets—which had previously been undervalued—is once again gaining attention.
Cushman & Wakefield Korea conducted its marketing campaign by highlighting the property’s iconic status within the commercial district and the competitive advantage of its prime location near the station. By establishing a competitive landscape centered on strategies for hotel conversion, redevelopment, and medical facility conversion, the firm successfully closed the deal by securing a consortium comprising Koramco Asset Management and the Paradise Group as the buyer.
These two transactions are viewed as consecutive demonstrations of Cushman & Wakefield Korea’s deep understanding of commercial districts, extensive investor network, and advisory capabilities in acquisitions and sales within the Seoul high-street retail market, which is now entering a recovery phase. Both Myeongdong and Hongdae are riding the same tailwinds of increased tourist traffic and the spread of K-content, and industry observers believe this trend will sustain investor interest in high-street assets for the foreseeable future.
Ryan Choi, Senior Director, stated, “Like the hotel market, the high-street market is expected to continue its upward trend based on the recovery of tourism demand.” He added, “As a number of relevant properties are expected to come onto the market in the future, Cushman & Wakefield—with its deep understanding of high-street commercial districts and extensive investor network—will be well-positioned to successfully facilitate the sale of these assets.”
<Photo – Exterior view of Cheonghwi Building>
<Photo – Exterior view of K-Square Hongdae>
