Living Way Fellowship

The Client, Living Way Fellowship, needed to reevaluate a site contracted for and approved for purchase by their congregation within 30 days following retaining Development Advisors. Following the evaluations the Client needed to find a new site and manage the development and relocation process from start to finish.

Assignment Highlights

• Evaluated Client’s ability to purchase a 10-acre, $2.2 million site that Client procured directly in the City of Centennial.
• Determined Client could not afford to develop the initial 10-acre parcel and that the City may not approve a church use even though the use was allowed by zoning. Seller would not restructure the contract to a 5-acre purchase with option and or extend time of closing for entitlements.
• Located an alternative 5-acre site in Highlands Ranch for $1.3 million, obtained an option to purchase the adjacent 7 acres, and negotiated the time needed for the entitlement process with Douglas County/Highlands Ranch.
• Selected and managed a Project Team through entitlement in Douglas County, fund raising, financing, sale/leaseback of existing facility and negotiation of a third-party day care provider.
• Managed construction and relocation of the approximately 500-member church.

Results

• Instead of purchasing the entire 10-acre parcel, Advisors saved the Client $1.3 million and assured its ability to relocate.
• Crafted a finance package/RFP for the land and the $4.9 million construction/permanent loan resulting in a fiveyear, fixed interest rate of 5.9%, amortized over 30 years, with only a one-half percent fee to the lender.
• Saved Client $50,000 in mortgage broker fees.
• Negotiated the sale/lease-back of Client’s existing facility along with a lease to a third party day care provider without the use of an outside broker. Saved Client $55,000 in brokerage fees.
• Negotiated favorable terms with general contractor saving $400,000 and 2 months of construction schedule.