Development Advisors just completed a unique “syndicated” arrangement to finance a new 100,000 SF church facility in south metro Denver for our client Mission Hills Church. What an incredible challenge! But we praise God for his leading and for his provision.
As it turned out, we could not have picked a more difficult time to procure debt financing. It’s still very soon after the credit collapse of 2008. There is no question that the “collapse” continues well into this new year (2009). We solicited no fewer than 12 lenders seeking debt financing for the $29 million MHC project. In collaboration with Keith Carson at Mission Hills Church, at least 8 complete packages of historic and credit information were provided to lender candidates. Together, we solicited conventional lenders, non-conventional lenders and private lenders (such as foundations). I am pleased to announce that Mission Hills Church was successful in obtaining up to 62% of its total project costs ($29 million) in the form of a syndicated commitment from both FirstBank and from Share Financial. Share is a church bond underwriting company based in Dallas, Texas. Share has done many bond underwritings all across the US over the past 30 years including First Aurora AOG (Aurora, CO) and Rocky Mountain Christian Church’s (Niwot, CO) new Frederick plant.
Not only are church bonds a good solution for church expansion projects, but they make excellent investments for church members who essentially invest in their own church. Personally, I intend on purchasing some of these highly secure and above-market yield financial instruments. Church bonds historically have a lower default average than municipal bonds and Share has not had a single default in its’ 30 year history.
You may wish to learn more about the MHC new building project entitled “Called to Something Big”.