Facts of the sale
Buyer: Jarratt Realty and Development Company
Purchase Price: $4,187,000
Due Diligence: 120 days with two 30-day extensions
Church notified: October 20, 2019
Congregational Vote: October 27, 2019
Vote will be happening at all morning worship services at both campuses;
Offer needs a majority vote for approval
Finance Team Members: Bob Leigh, Stephen Kirkpatrick, Kyle McCoy, Dan Sayger, Heather Williams, Paul Whitfield
FAQs
How will this change our debt load?
Currently, we owe 7.3 million on our facilities. The estimated paydown after closing costs should be 3.9 million,
resulting in a remaining debt of 3.4 million.
What will be the overall financial savings in the budget once the sale is complete?
The amount in our current budget allocated to the Southaven campus facilities and operations is $552,200. (This includes insurance, utilities, maintenance, maintenance personnel, equipment, improvements, lawn care, and the
building note.) However, not all of this will be actual realized savings. Part of these funds will be reallocated to overhead for the two new campuses (rent, utilities, etc.).
Why is the due diligence period 120-180 days?
When a buyer closes on a residential home, it usually only takes 30 days from the time the offer is accepted until
closing. In commercial real estate, however, there are several more steps that need to happen, and the buyer uses the due diligence time to take an in-depth look at the property.
When would we move?
Ultimately, it depends on our closing date, but most likely this would happen in late Spring 2020.
What will be the new locations for Colonial Hills Church Southaven?
Our staff has begun the process of evaluating usable space in West Southaven/Horn Lake and near Getwell Road in Southaven, and we’ve had preliminary conversations with a few places. We will communicate these new locations once they are finalized.
What are our next steps?
If the church affirms the sale of the property, the due diligence period for the buyer will begin October 28. Our staff will continue to investigate potential campus locations and develop core volunteer teams for each campus.