Court Evaluation: 364,770,000 Yen (4.73 million USD)
*Update: The winning bid was 488,800,000 Yen (6.3 million USD). A total of 16 bids were made on the property and the winning bidder was a corporate buyer. By 2013, the building had been demolished.
Christy Homes Nishiazabu is a 3-storey apartment building located right next-door to the Azabu Catholic Church in Nishiazabu 3 Chome. This apartment building looks like a high-end expat apartment building from the outside, but there are some serious flaws behind the surface which would, and mostly likely have, put off most buyers.
In December, 2009, a serious water leak with an unknown cause developed in apartment 202. This meant that all of the tenants had to be evicted while the owner tried to determine the source of the leak. Unfortunately it seems like it is unrepairable as it is leaking out of the concrete. Furthermore, in July, 2010, a large amount of water began leaking and the owners received a very expensive water bill. The Water Bureau came to investigate and replaced the water meters but this did not solve the problem.
Prior to foreclosure, the owner tried listing this property in May, 2011, with an asking price of 1.2 billion Yen (15.6 million USD) but obviously failed to find any buyers. The bank may have prohibited the seller from offering the property at a lower price.
According to a former listing by an agent, the estimated gross return of this property if it was fully occupied could be 3.25% pa. That would be assuming a rental income of 3.25 million Yen/month (42,000 USD), which is an average rent of 812,500 Yen/month per apartment. Considering the water leaks make this building unlivable, and given the current economy which has put a severe damper on the high-grade rental market, it more likely that you would lose money on this property.
Because of the serious ongoing water leaks that even professionals cannot repair, anyone looking at bidding on this property would only be after the land as the building may need to be demolished. Repair costs may even exceed the cost of rebuilding.
If the land was vacant, the approximate land value would be 1,135,000 Yen/sqm, or 616 million Yen (8 million USD). The Government assessor valued the building itself at 54 million Yen (700,000 USD). When determining this value, consideration was given to age of the building (26 years) and the water leak problems, which resulted in a 40% reduction in assessed value. The valuation is based on the cost of building which is 270,000 Yen/sqm, less any deductions such as age, wear and tear, etc. If you were to rebuild, the estimated cost would be 257 million Yen (3.34 million USD).
If you were to buy the same sized block of land at market value and construct the same apartment building the total cost would be approximately 873 million Yen (11.3 million USD).
The annual fixed asset and city taxes for 2010 were 1,940,322 Yen (25,000 USD).
Bidding: October 25 – November 1, 2011
Opening of bids: November 8, 2011
Court Evaluation: 364,770,000 Yen
Minimum Bid: 291,816,000 Yen
Deposit (20% of evaluation): 72,954,000 Yen
– Land: 543.21sqm
– Building: 953.97sqm (1F: 341.21sqm, 2F: 321.06, 3F: 291.70sqm)
– No. of units: 4 (3 x 3-bedrooms, 1 x 4-bedroom)
– Built: 1985
– Construction: 3 storey, reinforced concrete
– Land ownership: Freehold
– Building-to-land ratio (kenpeiritsu): 60%
– Building volume ratio (yosekiritsu): 200%
– Annual fixed asset taxes for 2010: 1,588,540 Yen
– Annual city taxes for 2010: 351,782 Yen
3-21-14 Nishiazabu, Minato-ku, Tokyo
Roppongi Sta. – 6 mins
Nogizaka Sta. – 10 mins
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