Selling a Church Takes Supernatural Powers

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ChurchForSaleSignLiving in a community that is growing rapidly I have seen how difficult it is to sell a church. Typically what happens is the parish grows beyond the capacity of the original church and there is not enough land for the church to build onto it. The parish then builds their dream church at another location and tries to sell the old church to pay for part of the expansion.

But finding a buyer for a church can be very difficult. The combination of zoning restrictions, neighborhood approvals, and functional space requirements often precludes use by other organizations or businesses in the space. So the only possible buyer is a smaller church looking to expand. And then some of the parishioners may be very picky on who goes into the space. I remember going to the Limelight in New York City years ago, a night club in a converted church, and I am sure that the Diocese did not plan on that use for an old church.

If you are offered the opportunity to sell a church, move slowly and carefully into the relationship. Find out what the stumbling blocks on potential buyers are, if the parish is willing to sell so the property can be demolished and rebuilt, and what restrictions they will put on potential buyers. It will be a hard sell to begin with and if the churches leadership is not being accommodating and logical, it can be a very difficult sale for you.

Leigh Nurre faces one of the toughest transactions in real estate: selling a property designed for one purpose and of interest to only a sliver of the market.

Nurre is among hundreds of U.S. real estate agents and brokers marketing older churches as traditional mainline congregations decline, people move to the suburbs and churches increasingly become all-week lifestyle centers that need more room. Nurre and others make telephone calls to new, renting congregations that may or may not have money to buy. They advertise on commercial real estate sites under “special purpose” designations. And they get exploratory calls from developers and others floating ideas for other uses, from funeral homes to private schools.

Nothing about the process is easy. Most older churches are designed solely for services and can require rezoning for alternate uses. Residential areas accustomed to a low-impact religious neighbor can be fussy about busier uses. Seller congregations can even balk at buyer proposals they find offensive. Churches also are expensive and fledgling congregations often lack the necessary large down payments on sites often listed for more than $1 million. via sacbee.com.

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There Are 2 Responses So Far. »

  1. Yes, churches are a different animal, so to speak, and for most real estate brokers they are a big problem, many that are mentioned here and others not.

    In my work with http://www.ChurchRealty.com, home of The Church Real Estate Professionals®, the biggest problem is getting the seller to move out so the buyer can move in.

    We have a distinct advantage over most brokers in that we specialize. Our mission is to serve churches, schools and religious organizations in the planning, marketing, acquisition and development of real estate. Our company has done this work exclusively for over 20 years.

    One reason more churches are considering purchasing existing churches today is very simple: Money!

    Given our preferences all of us and churches too, would like to build what they want where they want but as they count the costs very often they find they can find a suitable church building that can be bought and usually gt more space for half the price of a building project.

    Another area we see growing a lot is converting a commercial or retail building for church use. Especially right now while the economy is down, churches are making tremendous good buys on buildings that will convert very nicely for church use.

    We sponsor a free service for pastors, administrators, staff and committee members at http://www.ThePastorCast.com. Earlier this month our topic was Church Conversions. Feel free to stop buy and listen to what the team had to say.

    My name is Bill Travis, Senior Director of Service Realty, Inc., in Plano, Texas. You can reach me through either of the websites listed above.

  2. CBRE’s Religious Facilities Practice Group of North America repeatedly delivers, not only the expertise required to meet the highly specialized real estate needs of religious facilities, but the industry-specific knowledge necessary to guide religious organizations through a myriad of challenges and complexities often associated with property acquisition and disposition.

    As the largest commercial real estate provider in the world, CBRE has strategically positioned the Religious Facilities Practice Group to meet all of the real estate needs from the small emerging groups to those of the ultra-large Giga congregations. Our nationwide team of professionals is equipped to locate and negotiate suitable building solutions; assist in providing financing options; and when the transition dictates, pair the acquisition with an appropriate strategic plan.

    Since 1999, the Religious Facilities Practice Group (formally, Church Brokers) has assisted hundreds of religious organizations in their pursuit of facility acquisitions through big box conversions; built-to-suit with entitlements; multiple shared-use facilities; single-use structures; major and conditional use permit challenges; joint venture development projects (with investment partnerships who are dedicated to assisting specific religious organizations) and in many cases, developing ancillary revenue to lower operating costs of facilities; and as circumstances dictate, selling property assets.

    We offer our clients a comprehensive range of specialized expertise in the following areas:

    •Real estate brokerage
    •Sale negotiations and dispositions
    •Facility, site and land acquisitions
    •Lease renewals and negotiations
    •Targeted Property marketing
    •Banking and private investment capital relationships
    •Expansive network of real estate related vendors and experts
    •Consulting
    •Development and real estate strategy
    •Market studies, research, demographics, and intelligence
    •Financial planning and analysis
    •Property Due Diligence
    •Built to suit analysis and planning
    •Entitlements and Economic Development Incentives Negotiations
    •Highest and Best Use Analysis
    •Government / Community / Media Communications
    •Project Management
    •Property Management
    •Appraisal
    Our mission is clear and concise: to provide clergy and religious leaders with a level of personalized superior service unmatched in the industry.

    If you would like any further information please contact:
    Eric Knowles, Senior Vice President, CB Richard Ellis, Religious Facilities Practices Group eric.knowles@cbre.com

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