* Saying “Sayonara” to the Shin-Sakae building / auction
* BREAKTHOUGH on the Nagoya Station property!!!
* Agreement of intent to sell / buy the Nagoya property to be signed this week by CBI Japan and real estate developer/agency with final sale contract to be signed Lord willing in July after the real estate developer / agency finalizes their purchase from the current owner
* Need for continued pray for developer to be able to finalize purchase of Nagoya property from the current owner so that they can then finalize sale to CBI Japan!
Brothers and sisters in the family of God around the world who have been praying for the CBI Japan ministry campus project – rejoice with us!
We had a great meeting today with our realtor where God answered so many of our prayers! The urgency of today’s meeting was due to the fact that the 7-day blind auction on the Shin-Sakae property (option A) ends tomorrow. If we didn’t get any news on progress with the Nagoya property or if there was bad news we planned to quickly decide about entering the auction and the price of the bid, deposit $150,000 for the auction, and deliver the paperwork today to the courthouse. That seemed like the most likely scenario since we hadn’t heard any other news (good or bad) from our realtor this week. So no news or bad news today meant that we would be entering into the auction with almost no clue as to how much would be needed to win or if we even WANTED to win.
As a team we clearly all favored the Nagoya property (option B). It was difficult to publicly say that since we didn’t even know if it would be purchasable. Also the Shin-Sakae property was an amazing opportunity – to purchase a property that at the height of the real estate bubble in Japan was possibly around $9 million in value – for $1.1-$1.3 million. But we had concerns about the lack of adequate parking space (only 2-3 cars though that is not unusual in downtown Nagoya), the size/shape of the building (being quite skinny and not large enough for expansion beyond the already existing and planned ministries), and the location (while excellent, was still a 4 minute walk and then one subway stop away from Sakae or 3 stops from Nagoya station). When the Shin-Sakae building was the only property in our sight it really was an amazing opportunity and all of the less than ideal factors were tiny compared with all of the positive factors.
But the Nagoya property goes even beyond all of the amazement of the Shin-Sakae property!
The land is 2.5 times the size of the Shin-Sakae property with enough space for 12-14 parked cars! The internal building space is more than 1100 square feet larger. The total internal space is 8600 square feet. And the location while not as publicly visible as the Shin-Sakae building (which is on the largest street in Nagoya) is just a 5 minute walk from Nagoya Station! To put that in perspective, our current location which we rent in Nisshin City takes about 1 hour to get to from Nagoya Station. From the Nagoya property we hope to buy you can get to the 10 million people of Osaka within 50 minutes! And obviously it is central to all of the Nagoya area!
So here is an update on the situation:
our realtor’s boss came today and has a strong personal connection with the land developer/agency that will be buying the property from the company that owns it. We originally hoped to buy the property directly from the company, but they were not interested in selling to us as they wanted the simplicity of selling to a realtor/developer. It’s kind of similar to why some people sell their used car to a dealer when they can get more money selling privately. The responsible person at the company has already decided to sell to this developer/real estate company. Hopefully in the next week or two the company’s committee will finalize that sale. Then the contract will be signed soon after and then finalized by the first or second week of July.
In the meanwhile this week we will sign a contract with the developer/real estate agency where they promise to sell the property to us and we promise to buy from them. The price will be in the same range ($1.2 million or so) as the Shin-Sakae building which is amazing! When we first heard about the property we loved it but expected it to be in the $3 million range!
They will inspect the building and in early July will be the first time our team (though not me personally) will get to actually see inside the building! They will give us a report of all problem areas and future renovation needs. Then for 2 years they will take responsibility for any problems that they did not disclose at the time of contract. After we sign the contract we will request about 3 months until finalization in order to apply for tax exemption with Aichi Prefecture. This should save us another $50,000 or more.
If we had purchased directly from the owner (which we had hoped), we would NOT have been able to even look inside the building let alone inspect it. We would NOT have been able to wait for our tax exemption. AND we would have paid MORE for the property! So because of God’s grace and power and amazing orchestration we will now have the opportunity to buy at a cheaper price, have an inspection done (paid for by the seller) and get our tax exemption!!! God is amazing!
So the contract will likely be signed in July and the final turning over of the property will likely be in the month of September.
We need to keep praying that:
1) the company’s committee signs the final sale to the developer (which is 90% certain – but there is always the potential for unexpected developments)
2) that the developer honors the contract with us (but especially here in Japan for a respected company like theirs that has a strong personal connection with our realtor there shouldn’t be problems).
Lord willing also there won’t be major problems with the building itself. It’s unlikely to have problems as it’s been used as recently as March and the reason for the company exiting the building is because of consolidation of smaller buildings into a larger one. But if there are major problems we have the option to get out of the contract without problem.
Today was the day of breakthrough we have been praying for!!! We will be saying goodbye to the wonderful Shin-Sakae property and will following the results of the auction as spectators rather than participants. And we’ll continue to pray until the final signatures are made and the Nagoya property becomes the new ministry campus of CBI Japan!
The Lord has done an amazing “bait and switch” on us – baiting us through a GREAT property, helping raise all the needed funds – and then switching us to an even MORE AMAZING property in the very HEART of Nagoya!
THANK YOU for all of your prayers and for the many many who have sacrificed/invested financially for this new ministry campus!!! Please continue to pray and we look forward to sharing pictures to the whole world one day of our grand opening!
It’s been quite a drama – an amazing experience of God’s power and provision. From the start we asked only that God would get the glory! And He has answered our prayers in so many ways! HALLELUJAH!!!
Michael, on behalf of the CBI Japan team