Hokkaido is to the north of Sendai.

Literal

Hokkaido [topic-は] Sendai [of-の] north-direction [in-に] exists.

北方 ('northern direction, the north') is a compact directional noun. 仙台 is Sendai, the largest city in the Tohoku region of Honshu. A geographical reference from the Tohoku perspective looking further north.