Completed in two years from 1970 to 1972,[1]: 388  the building was a rare remaining example of Japanese Metabolism[2]: 105  alongside the older Kyoto International Conference Center, an architectural movement emblematic of Japan's postwar cultural resurgence.

As recently as August 2017 capsules could still be rented (relatively inexpensively, considering its Ginza locale), although the waiting list was long.

On-site construction of the elevators was shortened by incorporating the 3-D frames, the rails, and anchor indicator boxes in the precast concrete elements and by employing prefabricated cages.

[2]: 108  The original design concept proposed to combine specialized capsules into a larger living space,[2]: 105  but it is not clear if this was implemented.

[9] The Metabolist movement was launched in 1960 by a group of architects, designers, and critics including Kurokawa, Kiyonori Kikutake, Masato Otaka, Fumihiko Maki, Noboru Kawazoe [ja], Kenji Ekuan, and Kiyoshi Awazu, with the publication of Metabolism: the Proposals for New Urbanism at the World Design Conference in Tokyo.

The group advocated for the development of megastructures which largely were not realized due to changes in the 1970s resulting from energy crises and environmental considerations.

[11] At the same exposition, Kurokawa also designed a capsule house, suspended from the space frame roof of the Symbol Zone.

[12] Impressed by the Beautilion, Torizo Watanabe retained Kurokawa to design a similar permanent building for his real estate company, Nakagin, to serve business owners and employees as a second home for occasional overnight stays in central Tokyo.

On-site work included the two towers with their energy-supply and piping systems and equipment, while the capsule parts were fabricated and assembled at a factory 450 km (280 mi) from Tokyo.

As completed, the building was intended to serve mainly visiting businessmen, primarily as a hotel, but offering some studio apartments for short-term stays.

A majority of capsule owners, citing squalid, cramped conditions as well as concerns over asbestos, voted to demolish the building and replace it with a much larger, more modern tower.

[13] In 2018, a real estate company wanted to redevelop the tower and purchased the land and a few capsules, but failed during the COVID-19 pandemic.

[16] In May 2021, a number of outlets reported that the management company of the building had voted to sell the complex to the original landowner, reigniting speculation over potential demolition and redevelopment.

[2]: 112–115  "Capsule House-K" was owned by Kurokawa's studio until it went bankrupt, and subsequently was purchased by his son; it was made available for short-term rental for groups of up to seven people through Airbnb starting in May 2022.