Acquired from Cherry Hills Community Church in 1995, the church thrived in this proven church location until a leadership change resulted in a slow membership decline eventually requiring Colorado Community Church to sell its Class “A” 75,000 SF church property. CFS was hired as the church’s listing agent and tasked with finding a buyer for this large mega-church facility.
Developco began positioning this property for sale in Oct 2009 for $9.9 million. There were only 5 showings during this entire listing period—highlighting the challenge of selling a large church property. Eventually the property sold in May 2011 (19 months) for $6.55 million.
Establishing the Asking Price.
Church properties are slow to sell and rarely accomplish a price near their replacement value because there are few prospective buyers seeking church property at any one time. This is especially true for larger properties.
For this this luxury 75,000 SF church facility, in like-new condition, in a proven Denver location, CFS recommended setting the asking price near $10 million. After all, to duplicate this property from the ground up, it would cost nearly $19 million. Further, CCC had purchased the property for $4.5 million and spent nearly $6 million in 2006 renovating the building including adding a new fellowship hall, chapel, café, children’s classrooms, and completely replacing the parking lots. CCC obtained an MAI appraisal which valued the property at $9.9 million.
Sourcing Buyer Candidates.
CFS utilized its national commercial property databases (Loopnet and CoStar) to source prospective buyers, resulting in inquiries received from across the country. But eventually, CFS connected with a local church planter, Bo Mitchell, who was involved with a growing church (Highline Community Church).
- This was perhaps the highest quality church property to come available in the past 10 years. The initial asking price was set at $9.9 million, and the property eventually sold for $6.55 million.
- Instead of a protracted 2-3 year selling period, as is customary, especially for a property this size, the property sold in just 19 months.
- During the contract period, the buyer terminated, but eventually re-contracted and proceeded to close.
- The sale involved a complicated wrap-around seller-financed mortgage arrangement. Within 2 years, the seller received all of their sale proceeds.
- The seller agreed to lease-back for a one year period and the buyer was able to retain most of the existing third party tenants to assure enough income to cover the debt service.
- Highline Community Church relocated from its small and inefficient property at 6325 S. University Boulevard to this church property where Pastor Bob Beltz and Bo Mitchell started Cherry Hills Community Church.
- The buyer, Crosswalk Fellowship, was able to raise the equity from just four Christian investors who embraced Bo’s vision that “this is about kingdom work and placing the tool of this physical plant in the right hands so that lives may be impacted for Christ.”