The price on the property is approximately $1.3 million. Two years ago the property went on sale for $3.3 million. Despite the U.S. dollar’s considerable loss of value compared to the Japanese yen (a loss of over 20% in two years), the relative decline in real estate values has been greater than the dollar’s decline. This provides a great opportunity for our ministry to purchase a campus that could house our ministry for the next twenty or more years.
We were recently told that the price has now been dropped to less than $1.1 million. The business occupying the building will be declaring bankruptcy and the property will be transferred to the court. It is likely that the property will be put up for auction in a number of months, however we have been advised to seek to purchase the building before it goes to auction as there is risk that the Yakuza (Japanese mafia) will try to intimidate potential bidders and essentially steal away the property at a very low price. We believe that we may have approximately a 90-day window to raise funds for and purchase the building (updated 2/1/10).
TOTAL NEED: $1.2 million
By the grace of God we have two great provisions already. First our sponsoring mission organization, Mission to the World, has agreed to sell one property in Japan to help toward this purchase. This should provide about $330,000. (2/15/10 update: The land has been sold at the full asking price and will be finalized on 2/26.) In addition the Lord has graciously provided matching gift opportunities through two of His people. One friend of our ministry has offered $50,000 to match gifts for the campus. Another friend has offered a $200,000 matching gift.
If through the generosity and investment of His people the Lord provides donations for the full matching gift amount (which in total would provide $500,000), we believe that (with the additional resource of the $330,000 property to be sold) we would be within $100,000 or $200,000 of the range to make an acceptable offer on the property.
We expect considerable expenses for realtor fees, inspections, documentation, and renovations (potentially in the $200,000 range), but we hope that $1.2 million would cover both the purchase of the building, all of these expenses, and any additional needs.
It is our hope and prayer that the Lord would:
- keep this property on the market
- help us to raise $250,000 towards the $250,000 matching gift challenges
- help us to raise an additional $370,000 for purchase fees and renovation of the building
- help us to complete the purchase of the building by May 2010