My Church wants to sell its building - what are the considerations?

[Curt Riffel]

My Church as a building has been around for over 100 years. The location and land value are really good. It is in the downtown area of a major suburb adjacent to a park, municipal buildings, multifamily new builds, SFH new builds, restaurants, bars etc. It has easy access to the rail line, it owns a small strip center on the same property zoned for commercial with current tenants in place. It also leases around half of its building footprint to a Christian school.

However economically it doesn't seem viable as a continuing operational church. There is no debt but the spend per year in salaries, upkeep, and ministries is becoming too large to ignore compared to worship offerings, lease income from tenants/school, and a small amount of interest income. Value on the county tax rolls is around $3.5 million - which seems low to me. 

I am part of a committee that is going to make difficult decisions about whether we sell the building or not. 

1. What are the considerations in selling this property or keeping the property? 

2. Do you think it makes sense to sell?

3. Do you have any suggestions or thoughts? Any options we should think about?

Boston, Pittsburgh, Houston, Philadelphia, San Francisco, Salt Lake City

[Bill B.]

Talk to other churches that have sold. My mom’s Lutheran church in MN sold to another religion that met in saturdays and rented it back for sundays. The congregation had just gotten older and older, smaller and smaller. It was ridiculously expensive to upkeep just a 70 year old brick church in the midwest. 

[Alan Asriants]

It makes sense why the continued use of operating a church might be inefficient. Is there a possibility of rezoning? Maybe selling the land with a project/plan for redevelopment? I think its hard to find a buyer for an existing church and might be better suited for another use. I would consider its historical significance too. This is a tough one. Have you consulted a commercial broker?