Investment Apartment Building in Kitahiroshima, Hokkaido
This is a 20-unit apartment building for sale in Kitahiroshima City, Hokkaido. The property is a two-story wooden structure built in August 2006, with a total building area of 573.76 sqm (approximately 173.56 tsubo) situated on a 620.88 sqm (approximately 187.81 tsubo) plot of land. The location offers convenient access, being a 16-minute walk from the JR Chitose Line's "Kitahiroshima" Station. The property is located in a Second Category Medium-to-High-Rise Residential Exclusive Zone within a urbanization promotion area. The land is flat and rectangular in shape, with road frontage of 40.1 meters on an 8-meter wide public road to the west.
The property's facilities include separate bath and toilet units and storage space. There is parking available for three cars. A critical note is that the sale is subject to the continuation of a guaranteed bulk lease-back management contract. There is a plan for land subdivision, which will result in changes to the land area and shape. Importantly, future rental income and yield are not guaranteed.
Under the existing bulk lease-back management agreement, the new owner will incur monthly fees totaling 150,377 yen. This includes a furniture and appliance comprehensive maintenance service fee of 41,880 yen, maintenance costs of 77,147 yen, and Leonet-related fees of 31,350 yen. Note that the external maintenance contract cannot be transferred to the new owner, so these maintenance costs are subject to change. Currently, 19 units are under sub-lease. After the property is transferred, one additional room will be added to the sub-lease agreement, making it a 20-unit contract, which will cause fluctuations in the bulk rental income and yield. The average occupancy rates are: 82.16% for fiscal year 2023, 87.69% for 2024, and 92.15% for 2025.
