The Client, Cherry Creek Community Church, came to the conclusion that the disadvantages of the properties were preventing growth for this congregation. The disadvantages included poor visibility, little off-street parking, and more than $1 million in deferred maintenance. Development Advisors worked with Cherry Creek Community Church to position these church properties for sale for a higher and better use. We were able to sell two (2) existing church properties to a Residential Builder in a very soft luxury home market.
Assignment Highlights
- Contemplated the Highest and Best Use for the property in this R-2B Zone District.
- Designed architecturally the most likely single-family or duplex product for these 7 home sites in order to know the eventual size of structure that could be developed and the possible amount that the land could be purchased for still provide a reasonable market return for the future builder/buyer.
- Anticipated the value of the land based upon recent land sales comps, but more importantly, based upon recent home selling prices (greater than $2 million) in Cherry Creek North.
- Identified every Investor or home Builder active in the Central Denver market (currently working in luxury locations like Country Club, Hilltop, Bonnie Brae).
- Created a Prospectus for interested parties and orchestrated the closed bid selling process.
Results
- Sold the old church property as 7 luxury home lots for $4.9 million to a local investor. A higher selling price could not have been attained in such a soft luxury home market.
- Client invested the proceeds into an appreciating asset providing regular dividends and interest.
Denver, Colorado
Project Type: Luxury Home Sites
Date: 2007
Size: Seven (7) 50’ Lots