(Read more on the multifamily market.)

TOKYO-A deal with an international flavor is slated to be finalized this week, as the French government is leasing land at its embassy here to make way for a luxury condominium development. The project is valued at more than $175 million by the developers, a partnership of Mitsui & Co. and Nomura Real Estate.

Situated on a five-acre compound in central Tokyo, the French Embassy is spinning off an acre in the northwestern corner for the 60 condominiums, units which are being priced individually at rates between $2.5 million and $4.5 million. To be constructed on one of the last undeveloped pieces of the dense island metropolis, the embassy condos are expected to garner substantial demand among prospective buyers, according to project proponents.

The French government will provide the land under a 50-year agreement, using the profits to build another embassy on the grounds and pay for upkeep of the new facility. Financial terms of the pact were not divulged. The embassy would be built beginning next year, while work is slated to commence on the condos by the end of the decade. Another participant in the venture, Takenaka Corp., is providing general contracting services for the development.