Crossroads Community Church needed to obtain a larger worship facility because of continuing membership growth. Developco was challenged to make a small renovation budget stretch by acquiring an existing building to renovate. Developco was able to obtain a higher than normal loan amount to carry the existing church property until it could be sold.
Assignment Highlights
- Performed A to Z Services—from Strategic Planning, Site Selection, Capital Campaign and Financing Representation, Team Selection, Design, Engineering, Construction Management, Furniture, Fixtures, and Equipment, Outfitting, Move Management.
- Created pro-forma financial models showing ability to afford high debt resource. Orchestrated successful bond financing.
- Remained patient when this first choice targeted property (Burt Chrysler, Jeep) was taken off of the market.
- Negotiated an extended (six-month) due diligence period necessary to underwriting the bond financing. This required convincing Seller that a successful funding outcome would be accomplished. Bond financing, with the help of Share Financial, secured $5.8 million debt financing.
- Sold current church facility 2 years earlier than predicted.
Results
- Crossroads was able to acquire a building three times larger than its previous church facility (from 15,000 SF to 45,000 SF) to accommodate its surging growth.
- Purchased a building constructed in 2005 for approximately 40% of its original appraised value.
- With only a $900,000 budget for renovations, Crossroads was able to construct necessary infrastructure to qualify for a change of use from an automotive sales and service building to a fully functioning church facility.