Every church property gets the same initial review. We look at the building, the parcel, the market, and the congregation before we ever make an offer.
First we confirm the congregation wants out. Not all do. Some are downsizing, some are leasing, and some are exploring a partnership. We only engage sellers who have already decided to sell. That keeps the process clean for everyone.
We pull the tax record, the survey, and the title commitment on every parcel. We want to know acreage, setbacks, easements, and flood zone status. A church on two acres in a growing suburban area is worth more as a combination property than a church on half an acre behind a strip mall.
We hire a commercial inspector on every church deal. We want to know roof age, HVAC capacity, electrical service amperage, foundation condition, and whether the building has asbestos or lead paint. Older churches often have original slate roofs and boilers that are past replacement age.
We compare the subject to recent conversions and comparable sales in the same submarket. A church conversion four blocks away that achieved a six-cap after rehab tells us what this building might support. We also analyze local rental rates for multi-family and event space because those are the two most common end uses.
The seller timeline matters as much as the building condition. We have passed on deals because the church wanted a ninety-day close but we could not secure permits that fast. We have also moved fast on deals where the congregation had already relocated and was carrying two properties.
We evaluate every church property as a conversion project first and a building second. The land value is usually higher than the building value, but the spread between acquisition and converted value is where we make money.