Former Foreign Settlement Building No. 38 is a historic building in Chuo Ward, Kobe, Hyogo Prefecture. Its name comes from the plot number “38” assigned during the era when the area served as a foreign settlement. The building was once owned by Daimaru, now part of Daimaru Matsuzakaya Department Stores, and used as a warehouse for Daimaru Kobe, which stands to its north and west. Today, the historic structure has been preserved and incorporated into the Daimaru Kobe store.
In the 1980s, Building No. 38 became one of the landmarks that helped spark the revitalization of the former settlement into a distinctive district widely regarded as one of the most characteristically Kobe-like areas of the city.
Designed by architect William Merrell Vories, the building was constructed in 1929 to house the Kobe branch of Citibank. Initially, Citibank occupied the first floor, while German Dye and Bayer Pharmaceuticals operated on the second floor and Teikoku Sanso occupied the third floor.
After the German companies moved out, Teikoku Sanso expanded into the second and third floors. The building was later used by Daimaru Kobe as a warehouse and office space before being repurposed as part of the department store.
A major turning point came in January 1986, when Akira Nagasawa, then a director of Daimaru, became manager of the Kobe store. At the time, many younger female shoppers were choosing Sogo Kobe or shopping districts in Umeda, Osaka, prompting Nagasawa to seek ways to attract them back to Kobe.
He initially tried to bring Sotheby’s into the main Daimaru building, but the negotiations failed. Later, when Sotheby’s president visited Former Foreign Settlement Building No. 38, he suggested opening a business there instead. This led to the opening of “Live Love West,” a multipurpose retail complex operated by Sotheby’s, on March 1, 1987.
The project helped draw renewed attention to the former settlement and contributed to the area’s transformation into an attractive destination for shopping, architecture, and urban exploration.
Former Foreign Settlement Building No. 38 is an example of modern architecture in the American Renaissance style. Its south-facing facade features four Ionic columns, while seven pilasters decorate the east side. The stone exterior gives the building a stately, classical appearance.
The structure stands alongside Buildings No. 2 and No. 3 of Daimaru Kobe. Together, these buildings create a stretch of approximately 100 meters of elegant, classical streetscape within the former foreign settlement. At night, the building is illuminated, highlighting its architectural details and adding to the atmosphere of the historic district.
The building is conveniently located within Kobe’s former foreign settlement. It is only a short walk from Kyukyoryuchi-Daimarumae Station on the Kobe Municipal Subway Kaigan Line, or approximately five minutes on foot from Motomachi Station on the Hanshin Main Line or JR Kobe Line.
The surrounding former foreign settlement is rich in cultural attractions, museums, and historic architecture. Nearby destinations include the Kobe Lamp Museum, Kobe Tonbodama Museum, Kobe Doll Museum, THE FORTY FIFTH, Daimaru Museum Kobe inside Daimaru Kobe, and Genius Gallery.
Visitors can also explore Former Foreign Settlement Building No. 15, Kobe City Museum, Nankinmachi (Kobe’s Chinatown), the former Kobe Sumitomo Building, now known as Gin-Sen Kobe Building, and the Kobe Yusen Building. The area is ideal for a leisurely walk combining architectural heritage, cultural experiences, and shopping.