CorEquity

Generally, we need anywhere from 5 to 7 acres of free land to create a senior's community.  This includes land for parking and landscaping as well as separate entrances and exits if needed.

However, in some instances we can work with as little as 3 acres in the appropriate location.  Call us and let us do a quick evaluation of your location before assuming that you do not have adaquate land for development.

Generally, it is much easier to work with land that is free from all financial liens and encumbrances.  In certain instances we may be able to work with land that is encumbered.  However, it is more beneficial to the sponsoring church if the land has no liens, and here is the reason why. 

If the property proves to be suitable for a senior housing development, we may be able to have the excess property released from your current mortgage and paid off at the time new construction financing for the senior housing project is in place.  However, because we are now paying for the property in whole or in part, the sponsoring church's equity position in the project would be diminished by the corresponding loan payoff amount.

This however may prove beneficial to the sponsoring church in that we would be lowering both the church's current indebtedness and potentially monthly loan payments which would increase ministry cash flow.

If you are interested in the Senior Housing Development Program but know that your excess property has an existing lien, just let us know upfront so we can evaluate your project correctly.

Once the church is fully committed to sponsoring a senior housing facility on their property (as evidenced by a no cost engagement agreement), CorEquity will begin it due diligence and market study process.

The entire due diligence and market study process generally is a 2 to 3 month process which includes a 3 to 4 week period for general property due diligence and an additional 5 to 6 weeks for market study analysis.

Once CorEquity determined that there is a viable senior housing opportunity that can be placed on your ministry property, we (CorEquity) and our development partners create a single purpose LLC that holds title to the property and the new senior community. The church would contribute it's excess land into the new LLC in exchange for an ownership interest in the new entity (LLC). Church ownership is determined by the value of the property contributed into the LLC and entitles the church to both income from the new operating senior housing entity as well as any profits from the sale of the Senior Housing Community (if it is sold at a future date).