Tokyo Olympic village condo buyers want discount for move-in delays

Harumi Flag development team includes Mitsui Fudosan Residential

National Weekend Edition /
Mar.March 13, 2021 02:00 PM
Harumi Flag development renderings and Mitsui Fudosan CEO Masanobu Komoda. (Harumi Flag, Getty)

Harumi Flag development renderings and Mitsui Fudosan CEO Masanobu Komoda. (Harumi Flag, Getty)

Some of the condominium buyers in Tokyo’s Olympic village are seeking compensation for delays to their move-ins.

Occupancy at the master-planned Harumi Flag complex was to begin in 2023, but that has been pushed back at least a year, according to Reuters. The complex is set to house athletes competing in the pandemic-delayed Summer Olympics, now set to begin in July.

Two dozen buyers of Harumi Flag units want payment from the community’s development team — 10 companies with Mitsui Fudosan Residential https://therealdeal.com/new-research/topics/company/mitsui-fudosan/ as a lead developer. They have entered civil mediation proceedings.

The buyers say Mitsui Fudosan and its partners have provided little information regarding the delays. One woman who purchased a 1,020-square-foot unit for the equivalent of $784,000 said she was “shocked” that the only communication from the developers about the delay was a brief letter.

“After all that, I thought, ‘What? That’s it?’” she said, referring to the numerous in-person meetings required to purchase her unit.

Mitsui Fudosan said buyers can cancel contracts because of the delay, but did not say how many did so.

The Harumi Flag complex was partially funded with roughly $500 million from the Tokyo government. The city also paid around $38.7 million to lease the complex for a year to house 10,000 Olympic athletes.

They extended that lease when the Games were postponed for the pandemic, with the city paying another $38.7 million. Some condo buyers say the developers should use some of that money to compensate them for their delay.

Mitsui Fudosan is one of Japan’s largest real estate developers and investors. The firm has projects underway in the U.S., including a 438-unit apartment tower https://therealdeal.com/la/2019/03/07/mitsui-fudosans-dtla-tower-project-faces-renewed-opposition/ in Downtown Los Angeles.

[Reuters] — Dennis Lynch


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