Convert a Church to Income Property?

[Steve L.]

So there is an old abandoned church that used to own two houses connected on a new parcel. In 2010 and 2011 I ended up buying both of those houses as FNMA foreclosures.

The church is for sale. The owner wants too much still, but I am sure he is open to offers.

It is 7,000 sq ft. With a sanctuary and an attached class room style building. This is very low income area, but on a relatively busy street.

I am looking for creative ideas on what to convert it into to generate profits? Multi-family apartment style housing doesn't work great. Maybe low class hotel or hostel? Commercial might be kinda tough because zoning is mostly residential.

[Dion DePaoli]

The part that this was a church was interesting. The part where this is a 7,000 square foot building on a busy low income area street where the only other points I could pull from this.

An attached class room style building...not really sure what that is.

You will have to do a little better job describing shapes and sizes and room counts if you want a good idea to emerge. We can't see what you are seeing.

Why does a hotel work but not multifamily?

[Jeff S.]

I have a friend who made a bundle on an empty church he bought locally. One issue was limited parking, which I believe is why they left. While the church was for sale the house next door came on the market.

I don’t recall if the house came with an empty lot or just sat on a huge one, but his timing was perfect. He quickly bought both and then contacted a growing congregation who needed a larger facility. They were able to expand into the church and the house and use the lot for parking. Problem solved.

One option for you might simply be another congregation. Do you know why the church is for sale? What problem could you solve to perhaps make all three properties appealing as a package?

Jeff

[Steve Babiak]

How about considering an assisted living facility?

[Catherine D.]

Artists lofts? Live-work spaces with open galleries? They have been on a tear in my market and are perfect in lower income markets. There seem to be many grants available to these projects as well. Art Space is a teaming partner on many projects across the U.S...

Have you teamed with the feds or local govt on development projects? Potential for non-profit or community-oriented office space? May not be enough dough it in for you...

[Bill Gulley]

IMO, the best use for a church is as a church. Alternative uses are really limited due to social stigma or religious beliefs.

Trying to turn one into a retail space for example has never flown in my experience. Depending on design (the steple or it obviously being a church) actually keeps some people away regardless of what is inside. Design has alot to do with any alternative use.

If the location is good for a non-profit organization, that may fly if the purpose is civic minded and near the population to be served. For many, being on a bus line is important. If primarily office space with little public traffic, like the Red Cross for example, that may fly.

Senior assisted living may fly, but rehab could be very expensive if oxygen is required and monitors, depends on level of "assistance" and I'm not speaking of a nursing home.

Churches usually sell to other curches, in fact, they are a speciality in RE as well as financing due to the unusual collateral issues. It's hard enough for a small church to finance much less a conversion, unless it's really a big project.

There are some religions that believe that no one should ever enter another church or grounds where other religions were practiced, that's a social stigma that can't be overcome. They seem to ignore that little rule when they buy another church and convert it to their own use....hmmmm?

[Ann Bellamy]

My favorite use was a church purchased by an entrepreneur and converted to a bar/restaurant called the Holy Grail.

It's apparently booming.

[Bill Gulley]

That's likely in the NE....LOL, I can see a great menu line up as well together with a few house drinks, for those with more liberal thinking. :)

[Ann Bellamy]

In NH actually, the Live Free or Die state.

[Travis Long]

At the Orange Circle in CA a church was turned into an El Torito (a restaurant). It does quite well. It has a neat atmosphere... stain glass windows, etc.

[Michael Pilarski]

Steve L. One of my suggestions was already give (the bar/club). There used to be one here in Nashville that was great for a while. The other would be a mental health supportive living facility. This is for highly independent and high functioning mental health patients. Similar to a half way house but the residents don't leave. Plus you would be providing an important service to the community and probably wouldn't need to change the zoning. There is a huge need for these across the country and some local governments will even subsidize to help with costs. I have a friend that owns one here and TN and she is making bank and is looking to open a second soon.

[Grant P.]

Many churches in the Denver area have been converted into residences. A friend lives in one in a transitional neighborhood that did it very modern/loft style. Pretty cool.

Here is a link to a conversion they did across the alley from my house.
http://www.youtube.com/watch?v=42uHa4JF59A
and pictures
http://www.diannsilldesign.com/index.php#mi=2&pt=1&pi=10000&s=3&p=2&a=0&at=0

I think just the church residence was $3.5m

They used the parking lot and developed another 8 or so units at $1.5m to $3m

People who say churches cant be converted haven't seen the successful conversions. I love them, and would love to get into one if I could.

[Steve Nicewarner]

My first thought was a daycare or school.

[Bill Gulley]

Churches have been converted to SFD, I considered one at one time, the choir loft would have been a cool study. Talk about a great room! Then I thought about the utiltiy bills, I'd hate to cool that much space for a house!

Conversions will certainly depend on your area. If you can convert to the point that its prior use can't be recognized, problem no problem. A unique bar resturant is a good conversion, if it's accepted in the community. I'm in the buckle of the bible belt, World HQ for the Assemblies of God and 6 bible colleges in the area, so take that into consideration..... :)

[Karen Margrave]

I think the key to the whole thing is the location probably won't allow the rents that would be needed to convert the property to a new use. Is the building architecturally appealing, or just a run of the mill commercial buildings? In nice neighborhoods, churches have been converted into residential homes, Bed and Breakfasts, etc. However; in a low income area, that's not an option.

Any conversion would be expensive, bringing the building up to health and safety codes. As other posters mentioned, the best market would be to another church.

[Beka Shea]

I'm curious - what did you end up doing with the property?