How do you feel about such a tenant? How do you evaluate its strengths? I was looking at it as gym- so instead of growth in memberships/workouts, I was looking at growth patterns in number of attendees, contributions from members. Their balance sheet looks decent, positives are the large investment in the space from them, but certainly a unique tenant here with a non-standard build out. Any prior experiences or thoughts?
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Can't really speak to the financials although I know most are tax exempt. But I'd be thinking about how this could affect the brand of your building (if it is a multi-tenant building.)
Our fund has purchased several non performing church loans. General rule of thumb is the church can pay up to 30% of their mortgage (in your case rent) of their total tithes/offerings/income
Thank you! Appreciate the color, any rule of thumb in terms of attendees each weekend or contributions you would would want to see for a good church location? Also, this church is at a industrial location and paying $24 PSF in rent when the other tenants are paying $12 PSF in rent which is market. In your experience, how do church's rent look? Are they closer to retail/office rents? Thank you.
Attendance for churches and membership continue to go down. People are just going to church less. What is EXTREMELY important is how long the lead Pastor has been at the church and his following. You want to make sure he isnt thinking about retiring soon because you will lose membership count/donations. Also find out if this church has a Board/Elders that are retired rich people that aren't afraid to cut a check if they cant make rent/mortgage. This is important because its the rich board members of the churches that start a donation pact when the church comes on tough times
I can't answer your 2nd question without looking through memo's but I think they are typically higher.
Good luck evicting a church or raising the rent. In a prior life, I worked as a bank examiner and we didn't even criticize church loans much less did the bank foreclose/take action.
This is why banks are eager to sell these loans when they turn non performing. Like another poster said it is a PR nightmare for a BofA, Wells, etc to foreclose on a church
only do it if its the CHURCH OF SCIENTOLOGY Tom Cruise check your dms please ;P
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