The Client, Living Way Fellowship, needed to reevaluate a site contracted for and approved for purchase by their congregation within 30 days following retaining Development Advisors. Following the evaluations the Client needed to find a new site and manage the development and relocation process from start to finish.
Assignment Highlights
Evaluated Client’s ability to purchase a 10-acre, $2.2 million site that Client procured directly in the City of Centennial.- Determined Client could not afford to develop the initial 10-acre parcel and that the City may not approve a church use even though the use was allowed by zoning. Seller would not restructure the contract to a 5-acre purchase with option and or extend time of closing for entitlements.
- Located an alternative 5-acre site in Highlands Ranch for $1.3 million, obtained an option to purchase the adjacent 7 acres, and negotiated the time needed for the entitlement process with Douglas County/Highlands Ranch.
- Selected and managed a Project Team through entitlement in Douglas County, fund raising, financing, sale/leaseback of existing facility and negotiation of a third-party day care provider.
- Managed construction and relocation of the approximately 500-member church.
Results
- Instead of purchasing the entire 10-acre parcel, Advisors saved the Client $1.3 million and assured its ability to relocate.
- Crafted a finance package/RFP for the land and the $4.9 million construction/permanent loan resulting in a fiveyear, fixed interest rate of 5.9%, amortized over 30 years, with only a one-half percent fee to the lender.
- Saved Client $50,000 in mortgage broker fees.
- Negotiated the sale/lease-back of Client’s existing facility along with a lease to a third party day care provider without the use of an outside broker. Saved Client $55,000 in brokerage fees.
- Negotiated favorable terms with general contractor saving $400,000 and 2 months of construction schedule.
Prior to officially hiring Tim Dreessen as our project manager for our $6 million relocation, Tim reviewed our existing land purchase contract and brought to our attention some serious development risks that we had not considered. These risks could have completely destroyed our project. Tim’s knowledge of the entire development process is invaluable.
Wes Harding, Administrator
