LAND SALE AND DEVELOPMENT

The buyer, Folsom Capital Group, LLC (or approved assigns), intends to build a residential townhome community consisting of up to 90 for-lease units.  This development will be consistent with the conceptual site plans, layout, and architectural renderings currently being shared with the congregation.  To help visualize the project, there are stakes placed on the land that approximate the location of corners of the buildings that correspond to the site plan.

The buyer’s initial estimation for the community’s layout and unit mix shows the vast majority of the townhomes will be three-bedroom units (approximately 70%), with two- and four-bedroom floor plans making up the balance.  Individual home sizes will range from approximately 1,500 to 2,000 square feet. Projected monthly rents for these high-quality, build-to-rent homes are estimated to range between $3,250 and $4,150.  All units will have attached, two-car garages.

Additionally, now available are various renderings of the proposed townhome buildings, including approximate view perspectives from the church sanctuary, south parking lot, and the main entrance.  The site plan and aerial view layouts are the same as provided earlier, with the site plan slide now highlighting a dedicated legend for the sanctuary sightlines.

Please note that these visual representations are preliminary and subject to refinement as the buyer moves through the multi-month entitlement process.  While the overall footprint of the buildings is expected to remain consistent with the site plan, certain exterior design elements of the building could change.  Our purchase contract will allow us to review and approve material deviations from the initial renderings.

The purchase price is $3,480,000, which is equal to our full asking list price.  The buyer is proposing to construct high-quality, build-to-rent townhomes.  Upon contract signing, the buyer will have 15–18 months to complete architectural planning, due  diligence, and obtain the necessary municipal approvals from the City of Arvada and the  Colorado Department of Transportation.

A formal Broker Opinion of Value completed by our marketing agent, CBRE, in October 2023  established a market value range of $2,790,000 to $3,480,000.  

The Property Task Force (PTF) engaged CBRE in early 2024 to broadly expose the property to  the competitive market, allowing us to thoroughly evaluate a wide variety of potential uses and buyers. 

The process generated interest from primarily townhome developers, but we received interest  and proposals/offers regarding senior living, market rate apartments, workforce housing, hotel,  and recreational uses (see table below). The Task Force evaluated opportunities based on  multiple factors:  

The PTF believes the current contract at $3,480,000 is the result of full exposure to the  marketplace and it is a market rate and termed offer.

Folsom Capital Group, LLC is the entity that submitted the offer. Our primary point of contact has been Chris White, an experienced residential developer with a background in housing and development projects. The buying entity will be a newly formed, special-purpose entity created specifically for the development of the project, involving Chris White as the principal developer, with financial backing and oversight by the capital partner. 

Equally important, the church required the involvement of a major institutional development and capital partner. That partner is anticipated to be RangeWater Real Estate (or an equivalent institutional partner acceptable to the church). RangeWater Real Estate is a nationally recognized multifamily development and property management firm founded in 2006. Publicly available information indicates the company has developed or acquired more than 35,000 residential units and manages approximately 100,000 housing units across multiple states, representing more than $6 billion of real estate. A strong capital partner’s mandated participation provides institutional oversight, significant development expertise, capital market credibility, and confidence regarding execution and financial capability throughout the projected 15–18 month process. Moreover, the offer price was most competitive.

As we have shared previously, commercial land transactions take a significant amount of time. The contract defines the explicit stages as follows: 

Although the buyer is responsible for managing the development process, the church has agreed  to cooperate in several reasonable ways during the contract period. These include:

As with any commercial development transaction, several factors outside either party’s direct  control could impact the project including: