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NBF Acquires Frontier Musashi-Kosugi Office Towers for JPY 29 Billion

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NBF Acquires Frontier Musashi-Kosugi Office Towers for JPY 29 Billion

NBF Acquires Frontier Musashi-Kosugi Office Towers for JPY 29 Billion

Nippon Building Fund Inc. (NBF) has announced the acquisition of two office buildings—Frontier Musashi-Kosugi North and South Towers—located in Nakahara Ward, Kawasaki City, for JPY 29 billion. The transaction is scheduled to close on July 2, 2025, with CBRE acting as the broker.

The properties are situated just a two-minute walk from Musashi-Kosugi Station, a major hub served by six rail lines, offering strong connectivity to central Tokyo and Yokohama. The area has developed into a niche office market, particularly favored by electronics, IT, and education-related companies.

While Musashi-Kosugi is not a large-scale office district, the area experienced a surge in vacancy rates—exceeding 10% at one point—following the pandemic-driven shift to remote work. However, according to estie Market Research, recent leasing activity by small to mid-sized tenants has steadily improved occupancy, bringing vacancy rates back to the mid-3% to 5% range.

A key factor behind NBF’s investment decision is the limited office supply in Musashi-Kosugi. Unlike residential and retail developments, large-scale office buildings exceeding 9,000 tsubo (approx. 322,920 sq. ft.) remain scarce in the area, and no comparable new developments are currently planned. With this acquisition, NBF is positioning itself to leverage the supply-side advantage while targeting long-term stability and asset value growth.

Key Facts

  • Property Name: Frontier Musashi-Kosugi North & South Towers

  • Buyer: Nippon Building Fund Inc. (NBF)

  • Seller: Not disclosed

  • Transaction Price: JPY 29,000 million

  • Location: 13-2 and 13-31 Nakamaruko, Nakahara-ku, Kawasaki-shi, Kanagawa

  • Nearest Stations:

    • 2-min walk to Musashi-Kosugi Station (JR Yokosuka Line & Shonan-Shinjuku Line)

    • 7-min walk to Musashi-Kosugi Station (Tokyu Toyoko Line & Meguro Line)

  • Completion: February 2010

  • Number of Floors: North Tower: 14F / South Tower: 6F

  • Gross Floor Area:

    • North Tower: approx. 7,148 tsubo (approx. 236,180 sq. ft.)

    • South Tower: approx. 2,478 tsubo (approx. 81,920 sq. ft.)

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