Has anyone had any success obtaining financing to do build to suit development for a non-profit? I am working with a private school who has been in existence for over 10 years and needs to expand. I have the site and the construction team ready to go. Any input would be appreciated!
Hi,
I need more information from you before I can answer your question?
Can you tell me the state and county or city?
What type of non - profit? (State non profit status or a federal type like a 501-C3?)
Is this a church school? What type of school?
How much money do you estimate for entire budget? (Less than $1m, $1m to $2.5m, $2.5m to $5m or over $5m)
Does the non profit already own the land or have the cash to buy it?
Have you been hired by the board to consult for them? What is your position in the project?
You say you “Have the site” but has planning and zoning approvals been granted?
Has plans been drawn and permits been granted?
What is the site environmental standing and is a environmental assessment required?
Let me know as this is paramount to finding the right potential lender?
GR
Answers to your questions:
- Sterling, Loudoun County, VA
- They are a 501-c3 nonprofit
- It is a church school called Al Fatih Academy
- Money needed excluding the land would be $2.5M
- The owner is of the land is their existing landlord and also the new land owner. He is unable to get financing for this but would be willing to JV if it makes sense.
- I am a real estate broker trying to put the deal together
- Site would need zoning approvals
- No plans or permits have been completed
- Site doesn’t have any environmental issues that I am aware of
Thanks and let me know your thoughts.
Hi,
There are companies that specialize in making financing available to church's, with that said they want to be in first position and will only loan maybe 75% of the project value. These companies that lend money to churches will not loan it to a private party and do not require personal guarantees.
Ok, the following issues have to be resolved prior to being able to get financing:
- The current owner can subordinate the land sale to the church and agree to take a 2nd on his property?
- The location, type of non-profit, being a church and the amount needed are all ok and will meet initial standards!
- The site will require all of the approvals and entitlements to be in place and an approved set of plans and permit approvals ready?
- I am familar with Loudoun County and do not know if there planning and zoning dept requires an environmental impact report?
(I know a builder in Fairfax County I could ask?)
There is a lot to this, if you want to talk more send me a PM with your phone number and I would be happy to talk to you?
Good Luck,
GR