JAPANESE
JAPANESE
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
Japan Real Estate Insights by estie
/
Office
/

Japan Excellent REIT Sells Aging Senshin Building in Sendai for JPY 1.7 Billion as Portfolio Upgrade Continues

OfficeTransaction

Japan Excellent REIT Sells Aging Senshin Building in Sendai for JPY 1.7 Billion as Portfolio Upgrade Continues

Japan Excellent REIT Sells Aging Senshin Building in Sendai for JPY 1.7 Billion as Portfolio Upgrade Continues

Japan Excellent REIT disposed of the “Senshin Building,” an office property in Aoba Ward, Sendai City, on December 19, 2025. The disposition price was JPY 1,711 million, effectively in line with book value. The buyer is a domestic operating company. The REIT had already disposed of three assets—including the “Kowa Kawasaki East Exit Building”—in FY2024, continuing its strategy of rotating out of regional and older assets.

The property is located in Chuo 1-Chome, close to Sendai Station, and was completed in 1984. The Gross Floor Area totals approximately 667 tsubo (approx. 23,500 sq. ft.), accommodating office, retail, and parking uses. Occupancy declined sharply from 87.4% at the end of December 2024 to 69.0% at the end of June 2025, and remained low at 71.0% as of the end of October. Monthly contracted rent is approximately JPY 5.03 million, with 17 tenants in place.

The disposition reflects declining competitiveness due to the property’s age and extended leasing periods. While Sendai’s office market remains firm—with average vacancy in the low-4% range as of November 2025—Senshin Building’s 71% occupancy significantly underperforms the market (editorial analysis based on “estie market research”).

Aging remains a structural issue for J-REIT office portfolios: the average building age exceeds 25 years, and assets more than 30 years old account for roughly 40% of holdings. Japan Excellent REIT has been shifting toward higher-quality assets, including the April 2025 acquisition of “Ark Hills Front Tower” for JPY 17.25 billion. The latest disposition aligns with its ongoing effort to upgrade portfolio quality.

Key Facts

  • Property Name: Senshin Building

  • Seller: Japan Excellent, Inc

  • Buyer: Domestic operating company (undisclosed)

  • Disposition Price: JPY 1,711 million

  • Appraisal Value: JPY 1,570 million

  • Cap Rate (Appraisal): 4.2%

  • Location: 1-6-27 Chuo, Aoba-ku, Sendai City, Miyagi Prefecture

  • Nearest Station: JR “Sendai” Station, approx. 5-minute walk

  • Completion: 1984

  • Gross Floor Area: approx. 667 tsubo (approx. 23,500 sq. ft.)

  • Occupancy: 71.0% (as of end-Oct 2025)

  • Disposition Date: December 19, 2025

Related Articles