Japan Real Estate Investment To Sell Office Building in Niigata City’s Chuo Ward
Japan Real Estate Investment Corp. will sell Daido Life Niigata Building, an office building in Chuo Ward, Niigata City, to Kagoya Asset Management for JPY 1.65 billion. Kagoya Asset Management is a Kyoto-based company engaged in asset management and investment businesses centered on real estate and data center-related businesses, although the purpose of its acquisition of the property is unclear. The sale and purchase agreement is scheduled to be signed on May 20, 2026, with delivery planned for the same day.
The property is a nine-story building completed in October 1998, with a typical floor plate of approximately 146 tsubo (approx. 5,200 sq. ft.). It is located a 15-minute walk from JR Niigata Station in the Furumachi area, which sits across the Shinano River from the area surrounding Niigata Station. As of the end of March 2026, the property had eight tenants and an occupancy rate of 85.1%.
The investment corporation acquired the property in March 2019 from Daihatsu Co., Ltd., a real estate company based in Chuo Ward, Tokyo, and had operated it for about seven years. Average asking office rents for office buildings in Niigata City’s Chuo Ward have remained largely flat at around JPY 10,600 per tsubo since 2021, according to research by the editorial team based on estie Office Research. Meanwhile, improvements to the station plaza and under-track spaces are underway around Niigata Station, and the Niigata Station Bandai Exit East District has been added as a special urban renaissance district, with plans ahead for the development of large-scale office and residential towers. As a result, the station-front area is expected to further strengthen its role as a business hub. Against this backdrop, Japan Real Estate Asset Management, the asset manager, said the property’s competitiveness as an office building “requires close monitoring” because it is located in the Furumachi area, 15 minutes on foot from the station. It also noted that the building is more than 27 years old and future repair costs are expected to increase, leading to the decision to sell the property in order to improve the competitiveness of the portfolio.
Key Facts
- Property Name: Daido Life Niigata Building
- Seller: Japan Real Estate Investment Corp.
- Buyer: Kagoya Asset Management Co., Ltd.
- Sale Price: JPY 1.65 billion
- Location: 1214-2 Kamiokawamaedori 6-bancho, Chuo Ward, Niigata City, Niigata Prefecture
- Nearest Station: 15-minute walk from JR Niigata Station
- Completion: October 1998
- Number of Floors: 9F, steel-frame construction
- Area: Gross Floor Area: approximately 1,588 tsubo (approx. 56,500 sq. ft.) / Typical Floor Area: approximately 146 tsubo (approx. 5,200 sq. ft.)
- Appraised Value: JPY 1.8 billion, as of April 1, 2026, Daiwa Real Estate Appraisal
- Capitalization Rate: 4.9%
- Occupancy: 85.1%, as of the end of March 2026