By Mario Sanchanta and Atsuko Fukase.

TOKYO—In a sign that Japan's moribund real-estate market is coming back to life, a Japanese-led consortium is set to snap up the iconic Ralph Lauren building in central Tokyo for $350 million, in one of the largest real-estate transactions this year, according to people familiar with the matter.

Secured Capital Japan, a real-estate investment fund, is set buy the property, along with other investors. Deka Bank, Germany's largest manager of property funds, is the main lender and helped bidders refinance the loans. The sale is set to close as early as next week, according to the people.

Japanese real-estate transactions have been heating up this year. With prices still near 36-year lows, Tokyo led all cities world-wide during the first half of 2010 with real-estate transaction volume exceeding $10 billion, according to Real Capital Analytics, maintaining a big lead over London and Hong Kong, the Nos. 2 and 3 cities, respectively. Real-estate investment trusts and foreign investors have been active participants in the market, confident that prices have finally bottomed out.

Ralph Lauren Building in Tokyo, Japan

Read more at wsj.com.