Actor Ha Jung Woo has reportedly become the owner of a 2.4 billion won ($2.1 million USD) Starbucks building in Sokcho, Gangwon-do.
According to real estate industry affiliates, Ha Jung Woo purchased a 4-story building with a total floor space of 115.20-pyeong at 2.4 billion won on July 20th. The entire building is currently occupied by Starbucks. The actor had apparently taken a bank loan of approximately 600 million won ($535,000) using the building as collateral.
A real estate agent stated that the area was a smart choice as the area has been attracting many foreign tourists and the earnings from the lease were stable.
“The Sokcho building that Ha Jung Woo purchased is located near the Cheongchoho Lake and therefore, it has been attracting many foreign tourists lately. The Starbucks building has stable lease earnings and is also great for selling later.”
ㅡ Real estate agent
In fact, this was not the first Starbucks building Ha Jung Woo purchased. On July 6, the actor purchased his first Starbucks building in Gangseo-gu, Seoul at 7.33 billion won ($6.5 million USD) and paid off his remaining balance on December 3. This 3-story building is also occupied entirely by Starbucks, which has a long-term lease until 2031. With a deposit of 400 million won ($357,000 USD) and a monthly transaction fee of 24 million won ($21,000), the annual yield is 4.16%.
In July alone, Ha Jung Woo purchased 2 buildings occupied by Starbucks at a total of 9.78 billion won. He also owns two luxury villas in Jamwon-dong, Seoul. He purchased one of these in May 2013 at a price that was lower than the market value and purchased the second one in 2016 at 2.2 billion won where he is currently residing in.
Real estate experts have claimed that Ha Jung Woo has made a smart investment with careful consideration for profitability as well as future value.
“Ha Jung Woo, who has started profitable real estate investments later compared to other celebrities, has made a smart investment choice with consideration for both profitability and future value. Due to the ‘Ha Jung Woo effect’, the surrounding areas are even receiving attention.”
ㅡ Real estate expert