Mixed-Use Building with High Yield Potential in Shimabara
This property is a three-story mixed-use building named Sogen Building, located in Shimabara City, Nagasaki Prefecture. Constructed in March 1988 with a steel frame structure, it comprises 11 total units: three restaurant spaces on the first floor and eight one-room apartments split between the second and third floors. The total building area is 406.21 square meters on a land plot of 189.37 square meters.
The agent's notes provide critical details. The facilities include propane gas, city water supply, a septic tank system, air conditioning, hot water supply, combined bath and toilet units, and fire alarms. Special notes indicate the property fronts a single road to the south, which is a 2.9-meter wide public road with a paved surface and a frontage of 10.1 meters. Important remarks highlight that the sale includes the existing business fixtures (居抜き). However, a setback of 6.31 square meters is required, and for any future reconstruction, a 0.625-meter setback from the road is necessary as it fronts a Category 2 road. The property is sold with conditions including non-indicated boundaries, exemption from liability for contract non-conformity, and a condition for continued management.
A key financial point is the projected full-occupancy yield of 35.04%, with the current yield at 23.12% (2 out of 3 shops and 6 out of 8 residences are occupied). A significant upcoming cost is noted: exterior wall painting is needed soon, with an estimated cost of 2,983,695 yen. Even including this cost in the purchase price, the projected full-occupancy yield would be 29.22% and the current yield 19.28%.
Shimabara is a historic city on the Shimabara Peninsula, famous for its castle, Shimabara Castle, a well-preserved samurai fortress surrounded by moats filled with clear spring water. The area is part of the Unzen-Amakusa National Park, known for the volcanic Unzen hot spring resorts. The property is conveniently located approximately 570 meters, an 8-minute walk, from Shimabara Railway's Shimabara Station.
