One REIT to Sell Office Building in Nagoya's Naka Ward for JPY 8.01 Billion

One REIT, Inc. decided on July 22, 2026, to sell Nagoya Fushimi Square Building, an office building in Nishiki 1-chome, Naka Ward, Nagoya City. The buyer is an undisclosed domestic limited liability company (GK). The planned disposition price totals JPY 8.01 billion, and the trust beneficiary interest will be transferred in three installments in July 2026, February 2027, and March 2027.

The property is a four-minute walk from Fushimi Station on the Nagoya Municipal Subway Higashiyama Line and Tsurumai Line. Completed in 1987, the 13-story, two-basement building has a typical floor plate of approximately 249 tsubo (approx. 8,900 sq. ft.). Its occupancy rate stood at a high 97.9% as of the end of February 2026.

The investment corporation acquired the property for JPY 4.812 billion in September 2016. The following shows the trends in NOI and appraisal cap rate since acquisition. During the holding period, NOI remained broadly stable while the appraisal cap rate declined in stages. As of the end of February 2026, the appraisal value was JPY 5.69 billion, approximately 18% above the acquisition price, and the current planned disposition price is a further approximately 41% above the appraisal value.

Behind the sale is the fact that the property has passed 38 years since construction, with increases in future capital expenditure anticipated. Capturing a favorable sales environment while the property still maintains stable earning power, the transaction is an asset replacement that realizes unrealized gains while curbing the risk of higher future capital expenditure. To limit the impact of the gain on sale on distributions in a single fiscal period, the property will be sold in installments over three periods, helping to raise distribution levels in each period.

Key Facts

• Property Name: Nagoya Fushimi Square Building
• Seller: One REIT, Inc.
• Buyer: Undisclosed (domestic limited liability company / GK)
• Disposition Decision Date: July 22, 2026
• Sale and Purchase Agreement Date: July 22, 2026
• Asset to Be Transferred: Trust beneficiary interest
• Planned Disposition Dates: 1st: July 30, 2026 (20% co-ownership interest) / 2nd: February 26, 2027 (29%) / 3rd: March 30, 2027 (51%)
• Planned Disposition Price: JPY 8.01 billion total (1st: JPY 1.602 billion / 2nd: JPY 2.322 billion / 3rd: JPY 4.085 billion)
• Acquisition Price: JPY 4.812 billion
• Estimated Book Value at Sale: JPY 4.756 billion total
• Estimated Gain on Sale: JPY 2.907 billion total
• Appraisal Value: JPY 5.69 billion (February 28, 2026, Daiwa Real Estate Appraisal Co., Ltd.)
• Location: 1-13-26 Nishiki, Naka Ward, Nagoya City, Aichi
• Nearest Station: Four-minute walk from Fushimi Station on the Nagoya Municipal Subway Higashiyama Line and Tsurumai Line
• Completion: November 1987
• Number of Floors: 13F / B2 (steel-reinforced concrete construction)
• Use: Office and retail
• Area: Site area of approximately 455 tsubo (approx. 16,200 sq. ft.) / Gross Floor Area of approximately 3,931 tsubo (approx. 139,900 sq. ft.) / Typical floor plate of approximately 249 tsubo (approx. 8,900 sq. ft.) / Leasable area of approximately 2,547 tsubo (approx. 90,600 sq. ft.)
• Occupancy: 97.9% (as of February 28, 2026)
• Total Number of Tenants: 40
• Brokerage: Mizuho Trust & Banking Co., Ltd.