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Japan Real Estate Insights by estie
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Ichigo Office REIT Sells Fully Leased Oita Office for JPY 1.75B, 21% Above Appraisal

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Ichigo Office REIT Sells Fully Leased Oita Office for JPY 1.75B, 21% Above Appraisal

Ichigo Office REIT Investment Corp. sold the “Ichigo Mirai Shinkin Bank Building” in Oita City, Oita Prefecture, on November 10, 2025, for JPY 1.75 billion. The sale price was approximately 21% above the most recent appraisal value of JPY 1.44 billion and roughly 1.7x the assumed book value.

The property is a sectional-ownership office building fronting the arterial Chuo-dori Avenue, about a 10-minute walk from JR “Oita” Station and near the government district. It is an eight-story steel/reinforced-concrete structure with a gross floor area of approximately 1,690 tsubo (approx. 60,136 sq. ft.). Tenants include Oita Mirai Shinkin Bank’s dedicated loan and pension consultation branch, along with sales offices of a major life insurer and a listed company; since April 2023 the building had maintained 100% occupancy.

Ichigo Office REIT acquired the asset in November 2011 for JPY 1.158 billion and held it for about 14 years. Considering prevailing rent levels in the surrounding market, the REIT judged the upside potential to be limited. With the building now 31 years old, it anticipated certain repair and equipment renewal costs would be needed to sustain and enhance competitiveness, and therefore explored a disposition. Upon receiving an approach from the buyer and comparing the projected future costs of holding against the disposition gain, the REIT concluded that the sale would best serve unitholders’ medium- to long-term interests.

Average asking rents in the Oita City office market have generally remained in the JPY 8,400–8,600 per tsubo range since 2020, with a five-year increase of about 2% according to “estie Market Research”. While stable for a regional city, limited rent growth potential made a transaction more than 20% above appraisal a sign of strong buyer demand for well-located, fully leased assets in Oita’s city center.

Key Facts

  • Property Name: Ichigo Mirai Shinkin Bank Building

  • Seller: Ichigo Office REIT Investment Corp.

  • Buyer: Not disclosed

  • Transaction Price: JPY 1.75 billion

  • Address: 3-1 Niage-machi, Oita City, Oita Prefecture (Office); 1-2-22 Miyako-machi, Oita City, Oita Prefecture (Off-site parking)

  • Nearest Station: JR Nippo Main Line, etc., “Oita” Station, approx. 10-minute walk

  • Completion: February 1994

  • Number of Floors: 8F (Office) / 1F (Parking)

  • Structure: Steel / Reinforced Concrete (Office); Steel (Parking)

  • Gross Floor Area: approx. 1,691 tsubo (approx. 60,171 sq. ft.) (Office); approx. 32 tsubo (approx. 1,139 sq. ft.) (Off-site parking)

  • Major Occupier Mentioned: Oita Mirai Shinkin Bank (loan & pension consultation branch)

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