Introduction

Manhattan Bible Church, deeply rooted in the Inwood community, owned two properties that were recently rezoned. Both properties, featuring aging buildings in need of substantial renovation, presented an opportunity to maximize development potential while meeting the church’s needs for a new, improved facility. Development Site Advisors® was engaged to navigate this complex transaction. 

Client Background

Manhattan Bible Church, a well-established institution in Inwood, sought to remain within the community while becoming financially independent. The church owned two sites across the street from each other. One site was 144,000 buildable sq ft with a 20,000 sq ft building requiring significant renovation, while the other property also needed substantial improvement. The church’s primary goal was to secure a development partner who could not only provide financial returns but also build a new space that met the church’s specific requirements.

Challenges

Finding the Right Developer

The primary challenge was to identify a developer who could offer the highest value for the properties while also having experience working with nonprofit organizations. Additionally, the developer needed to commit to building a new facility for the church, ideally including a 10,000-sq ft sanctuary and gym space.

Tax Abatement Constraints

The church faced an expiring tax abatement in June 2022 and needed a developer who could undertake the project without being subject to new taxes. This constraint requires careful planning and selection of a developer familiar with these complexities.

Defining the Space Requirements

Another challenge was determining the precise amount of space the church required for its new facility. Initially, the plan involved selling both properties, but the church decided to retain one site for renovation and redevelopment. This decision necessitated a clear understanding of the church’s needs to ensure the new space would adequately serve its functions.

Solution

To address these challenges, Development Site Advisors® leveraged strategic planning and engaged Matter Realty, a consulting firm specializing in real estate needs assessment. Together, through expert consultation, we conducted a thorough evaluation to determine the church’s requirements and crafted a detailed Request for Proposal (RFP). This clear path to transaction ensured that potential developers understood the scope and specific needs of the project. 

Implementation

We went to market with a pre-qualified list of developers, focusing on those with a proven track record in working with nonprofit organizations. The RFP outlined the church’s needs, including the requirement for a new sanctuary/gym space and the need to mitigate tax implications. We navigated through various proposals and engaged with both nonprofit and for-profit developers. 

Results

 We successfully identified a partnership between a nonprofit and a for-profit developer, who together agreed to develop affordable housing on the property while constructing a 10,000 sq ft sanctuary and gym space for the church. The proceeds from this transaction were allocated to renovate the church’s existing school building, ensuring the church’s continued presence and service in the community. 

Conclusion

This case study highlights how Development Site Advisors® effectively managed a complex real estate transaction involving regulatory constraints, tax considerations, and community needs. By leveraging expert consulting and strategic planning, we facilitated a successful outcome that preserved the church’s legacy and supported its ongoing community role.