THE CHALLENGE
The church was in a healthy position, with its membership and financially, but was considering how it could leverage its current strengths to make additional improvements and continue to grow the church. With its desirable location in a transitioning neighborhood, and excess land not being fully used, the church wanted to better understand the property’s value and consider if the equity tied up in the real estate could be put to a better use elsewhere.

THE STRATEGY & OUTCOME
Our team was hired, and we valued the property 1) as an existing building, and 2) as land, with its current, 5-story-density zoning as a future development site.

After studying the market and recent nearby sales transactions, we determined the highest value for the property was as land, for a 5-story multifamily project. No rezone would be required to maximize value, meaning if the church wanted to sell, a transaction would not necessarily take much time to close. The church members considered relocating, we explored larger properties nearby, and analyzed the financial implications of a move.

After a few short months, the church decided the best path forward for them was to stay in its current property and not make any major changes. Our assignment came to a close and the church continued operations as usual.

POST ASSIGNMENT COMMENTARY
The church was thriving where they were in their appropriately sized property. They were educated on the market value of the property and better understood what options were available to them. They appreciated our analysis and came away more confident in their current position and future prospects.