Advance Residence to Swap Assets in Sakurashinmachi and Tenjinbashi Totaling JPY 2.8 Billion
Advance Residence Investment Corporation announced on August 26, 2026, that it will acquire Residia Sakurashinmachi (currently named Residence Sakurashinmachi Square), a rental apartment property in Setagaya Ward, Tokyo, and sell Residia Tenjinbashi in Kita Ward, Osaka. The planned acquisition price is JPY 1.6 billion and the planned sale price is JPY 1.23 billion. Both transactions will be executed on September 30 of the same year or on a separately agreed date. Both the seller and the buyer are domestic special purpose companies (SPCs) whose names are undisclosed.
Residia Sakurashinmachi is located an eight-minute walk from "Sakurashinmachi" Station on the Tokyu Denentoshi Line and was completed in 2005 as a five-story building above ground. It comprises 26 compact and family-type residential units. Occupancy by floor area stood at 80.0% as of the end of July 2026. Renovation of the individual units is anticipated, and the appraisal NOI yield against the planned acquisition price is 4.2%.
Occupancy at 2DK to 3LDK rental apartments within a ten-minute walk of Sakurashinmachi Station has been running in the 99% range, and this property falls below the surrounding average. Under the same conditions, the average asking rent for properties less than five years old is approximately JPY 16,970 per tsubo, approximately 34% higher than the approximately JPY 12,640 for properties 20 years or older, leaving room for rent increases through renovation (estie Residential Research, editorial team analysis).
Residia Tenjinbashi, the property to be sold, is located a three-minute walk from both "Ogimachi" Station on the Osaka Metro Sakaisuji Line and "Tenma" Station on the JR Osaka Loop Line. Completed in 2000, it is a 12-story building above ground comprising 78 units in total, including 71 single-type units and seven compact units. Occupancy by floor area stood at 93.6% as of the end of July 2026. The REIT expects a gain on sale of approximately JPY 488 million.
The transaction represents a move to realize unrealized gains on a stably occupied existing property while rotating capital into a property with room for earnings improvement. On August 28 of the same month, the REIT also plans to acquire two residential properties in Arakawa and Koto wards for a combined JPY 2.36 billion, expanding its portfolio in Tokyo's 23 wards together with this acquisition (see related article: Advance Residence to Acquire Two Apartment Properties for JPY 2.36 Billion).
Acquisition Property Overview
- Property Name: Residia Sakurashinmachi (currently named Residence Sakurashinmachi Square)
- Buyer: Advance Residence Investment Corporation
- Seller: Undisclosed (registered beneficiary as of August 27, 2026: Japan Camellia Tokutei Mokuteki Kaisha)
- Asset Acquired: Real estate
- Planned Acquisition Price: JPY 1.6 billion
- Appraisal Value: JPY 1.74 billion (as of July 1, 2026, Japan Real Estate Institute)
- Appraisal NOI Yield: 4.2%
- Contract Date: August 26, 2026
- Scheduled Acquisition Date: September 30, 2026, or a separately agreed date
- Location: 2-30-14 Sakurashinmachi, Setagaya-ku, Tokyo
- Nearest Station(s): Tokyu Denentoshi Line “Sakurashinmachi” Station (8 min walk) / “Yoga” Station (13 min walk)
- Completion: January 2005
- Number of Floors: 5F (reinforced concrete construction)
- Leasable Units: 26
- Land Area: approximately 187 tsubo (approx. 6,700 sq. ft.) / Gross Floor Area: approximately 391 tsubo (approx. 13,900 sq. ft.)
- Occupancy by Floor Area: 80.0% (as of July 31, 2026)
- Master Lease Company: ITOCHU Urban Community Ltd. (planned)
- Property Management Company: ITOCHU Urban Community Ltd. (planned)
Disposition Property Overview
- Property Name: Residia Tenjinbashi
- Seller: Advance Residence Investment Corporation
- Buyer: Undisclosed
- Asset Transferred: Domestic real estate trust beneficiary interest
- Planned Sale Price: JPY 1.23 billion
- Estimated Book Value: JPY 728 million
- Estimated Gain on Sale: approximately JPY 488 million
- Appraisal Value: JPY 1.21 billion (as of July 31, 2026)
- Contract Date: August 26, 2026
- Scheduled Sale Date: September 30, 2026, or a separately agreed date
- Location: 3-10-18 Tenjinbashi, Kita-ku, Osaka-shi, Osaka
- Nearest Station(s): Osaka Metro Sakaisuji Line “Ogimachi” Station (3 min walk) / JR Osaka Loop Line “Tenma” Station (3 min walk) / Osaka Metro Tanimachi Line “Minamimorimachi” Station (7 min walk)
- Completion: February 2000
- Number of Floors: 12F (steel-reinforced concrete construction)
- Leasable Units: 78
- Land Area: approximately 172 tsubo (approx. 6,100 sq. ft.) / Gross Floor Area: approximately 718 tsubo (approx. 25,500 sq. ft.)
- Occupancy by Floor Area: 93.6% (as of July 31, 2026)
- Trustee: Mitsubishi UFJ Trust and Banking Corporation
