[Ota Ward, Kamiikedai] Difficult to Sell Due to Complex Rights Despite Proximity to Station... Acquired Old "Terraced Shops"

Philia Corporation (Itabashi Ward, Tokyo; Representative Director: Naoyuki Koshikawa) has released a case study of its acquisition of "nagaya" (terraced houses/shops) where multiple shops are connected.

▶ https://philia-co.com/purchase/otakukamiikedai-nagayarentou-kaitori/

This is introduced as an example of a new approach to issues such as the increasing problem of vacant houses and complex rights adjustments in recent years.

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【Background】

According to a survey by the Ministry of Internal Affairs and Communications, the number of vacant houses in Japan is increasing year by year, and the management and disposal of vacant houses have become social issues.

Currently, in Tokyo and the three surrounding prefectures, properties with "unbuildable status," "co-owned shares," or that are "nagaya/terraced buildings" often face difficulties in selling or disposal, even with major real estate agencies, because they cannot be financed with housing loans and their rights are difficult to adjust.

【Case Summary】

This was a retail property located in a shopping street area near the station, which should have had high asset value. However, it was an old "terraced building" connected to the adjacent property, and the land and building rights were intricately intertwined with those of the neighboring land. Free utilization was difficult, as rebuilding required the consent of adjacent owners, and it was difficult to find a buyer because general investors and businesses could not obtain loans. The owner consulted us, troubled by the fact that "it has potential due to its proximity to the station, but it's hard to sell due to rights issues."

Terraced building in Kamiikedai, Ota Ward

【Property Overview】

Location: Kamiikedai, Ota Ward, Tokyo

Transportation: Within walking distance of the nearest station

Property Type: Used retail store (terraced building)

Current Status: Retail store (rented)

Special Notes: Difficult to rebuild independently due to being terraced; complex rights situation

Transaction Type: Our company's acquisition

【Background and Challenges of Consultation】

This was a retail property located in a shopping street area near the station, which should have had high asset value. However, it was an old "terraced building" connected to the adjacent property, and the land and building rights were intricately intertwined with those of the neighboring land. Free utilization was difficult, as rebuilding required the consent of adjacent owners, and it was difficult to find a buyer because general investors and businesses could not obtain loans. The owner consulted us, troubled by the fact that "it has potential due to its proximity to the station, but it's hard to sell due to rights issues."

Most of the building (1st and 2nd floors) is designed for retail/office use.

【Our Response and Solution】

While banks often give negative evaluations for "non-conforming buildings" or "terraced buildings," we prioritized the profitability (actual return) of the property as a "store near the station." Even though the building was old and the rights were complex, we determined that sufficient rental income as a store could be expected, and we immediately decided to purchase it with our own funds, without relying on loans.

【From the Representative】

"Terraced shops (nagaya shops) near the station" like this one are very common in old commercial areas in Tokyo, including Ota Ward. Despite their good locations, major real estate companies often refuse to handle them because they "cannot be separated" or "the boundaries with neighbors are ambiguous." We have the expertise to acquire such properties, generate rental income, or connect them with investors who can purchase them with cash. Before giving up because "the rights are complex," please let us evaluate the value of its location.

"Terraced shops" connected to neighbors

【Future Outlook】

Philia Corporation will strengthen its provision of transparent appraisals using IT and realistic solutions based on over 1,000 on-site experiences to address the worsening problem of vacant houses.

In the future, we will deepen our collaboration with administrative bodies and professionals to regenerate "problem properties" that are difficult to utilize into "valuable assets" that contribute to regional safety and security. We aim to build an infrastructure for sound real estate circulation that does not leave a negative legacy for future generations.

▶About Philia Corporation

Philia Corporation is a real estate company specializing in the acquisition and resale of generally difficult-to-sell properties such as "vacant houses" and "problem properties," including unbuildable properties, co-owned shares, and terraced buildings, primarily in the Tokyo, Saitama, Chiba, and Kanagawa areas. With over 1,000 consultations and a representative who holds the qualification of "Akiya Soshishi" (Vacant House Consultant), we carefully unravel complex rights and legal restrictions, and find new value even in properties rejected by other companies.

▶Company Overview

Representative: Representative Director Naoyuki Koshikawa

Business Activities: Real estate sales and regeneration

Location: Maison NOWROAD 1F, 1-25-17 Akatsuka Shinmachi, Itabashi Ward, Tokyo, 175-0093

URL: https://philia-co.com/

▶Contact

Public Relations: Katsuno

[email protected]