I just spoke to the company (sales rep) that owns this domain. At least they were fairly honest and said the domain itself is not generating much traffic.

I told him a figure I would be happy to pay and he said he would go to his manager. They have sold similar domains for more than what I asked for. Perhaps it was a good sales rep, he joked.

This is a pretty good article on valuing a domain. I have the cash, and I can see the potential, so I am thinking why not go for it. I had fairly similar doubts when I bought tokyoessentials and it worked out pretty well for me.