Narthex One Newsletter – Q2 2021
A very good second quarter for 2021
A message from Rob Boyer, CEO
I’m pleased to report excellent results for the second quarter. The portfolio is performing as expected with no negative surprises. The Word and the Way, our Saturday worshipping group at St. James, renewed their contract with us for another year. Restore Community Church, the anchor tenant at St. James, celebrated their 1-year anniversary with us and is continuing to grow and thrive in the community.
The 2nd quarter saw the completion of our Management Agreement standard contract as well as an accompanying FAQ (Frequently Asked Questions) about taxes for churches. This informative FAQ is a one stop shop for questions related to tax exempt status, property tax exemptions, and unrelated business income tax issues for church real estate. A critical information piece for churches interested in partnering with Narthex. We are currently in the process of offering this new management agreement to various churches throughout the metro.
We are pursuing a new opportunity with Impact KC in Overland Park, Kansas. This church sits on 8 acres in a prime location across from the Overland Park campus of the University of Kansas. We have submitted an offer of $1.8 million for the property. The board has accepted our offer and now the church will vote on it in the coming weeks. This property offers a number of interesting revenue producing opportunities. We already have several church groups interested in leasing as well as an indoor sports club that could use the sanctuary on weekdays as a gym. More to follow…
We landed a purchase agreement for the acquisition of Southridge Presbyterian for a great price. Regrettably, our due diligence process revealed the presence of extensive mold and water infiltration issues in the foundation. As a result, we have pulled the plug and walked away from what might have been a very poor acquisition on our part. Congrats to Krystal on our team whose thorough due diligence discovered these issues before we got too far into the process.
As always, if you have questions or ideas we’d love to hear them. Thank you for the trust you place in us! We strive every day to be good stewards of your resources!
Our newest project
I’m pleased to report that we have entered into a purchase agreement for the acquisition of Mission Southside Church in the Olathe suburb of Kansas City for $520,000. This church has been known to us for some time, but we never had a good tenant for the space.
Quality networking led us to a Catholic church plant looking for a home in southern Olathe. When the church arrived to tour the facility, the Priest turned out to be an old friend and we knew this deal would come together. The Catholics are building a new facility in the area, but will rent from us for at least 3 years.
Mission Southside is a beautiful little church in a thriving area—it, and its new tenant, will make an excellent addition to our portfolio. Congrats to Darren on our team who pulled this deal together from start to finish!
