Real estate transactions for non-profits can be daunting: special division of NAI Capital helps...

The New Testament says God told Peter that he would build his church upon him.

The paperwork involved has intensified somewhat since then.

Ask Bill Lowder--he represents churches and non-profits in selling and leasing as a Realtor with NAI Capital Non-Profit, covering an area from

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The sale of a church building is not like other commercial transactions.

For other Realtors, "if they go into it with blinders on, they're going to get surprised," Lowder said.

"It takes a lot of time, and a lot of brokers can't take the time," he said.

"Although we have to follow the same legal guidelines and regulations as any commercial property for office or industrial use, non-profits also have to have IRS approval. They have to have their 501(c)(3) documentation. The government requires many reports and more data necessary for the sale to be able to go through," he said.

"There are so many requirements," said, citing fire department and building and safety issues.

Many places of religion were built before the Americans with Disability Act requirements and also do not meet contemporary parking restrictions. In a typical commercial building of an equivalent size, fire and parking regulations address the number of users who might be in the facility at any one time. Whereas for a church, typically the total number of users in a week could all be there at the same time, which, as Lowder said, impacts neighborhoods.

Lowder cited other issues for non-profits--including rehab centers and homes for unwed mothers- is they often get funding from grants. Likewise, he said, "It's time consuming. They should use a professional grant writer, but often they try to engage it by themselves."

The complex nature of applications and documentation mean "they can get bogged down," said Lowder.

That can also push back the timeline for closing.

It's not unusual for escrows to take six months to a year to close, he said, which can be another disincentive for other brokers. They get referrals from other brokers who don't want to handle the business.

"We of course pay a referral fee, so they're glad to do it," Lowder said. Lowder's business--run with his wife, Dawn, out of the global firm's Ontario office--can coordinate all the paperwork for any of their transactions through the main office in Encino, sometimes completing transaction on facilities they haven't seen.

Hillcrest Christian School in Granada Hills retained the Lowders as agents to sell some surplus property, said Rick Donnelly, director of development.

He said, "My good friend Bill," brought another expert from NAI and a couple of potential buyers ... "some pretty big players" ... and "worked with us from both sides" on finding a relocation site.

Although letters of intent were offered, not everything aligned properly and the property is not currently for sale.

The Lowders are in so specialized a niche that they cover an area of up to 20 million people, whereas a typical Realtor may not focus beyond an entire zip code. The regional coverage permits the non-profit niche to be somewhat isolated from the peaks and valleys of the generalized, local real estate market, he said.

"It's less affected than residential or what may happen with office and retail markets, but it's still supply and demand," Lowder said.

Recently the business has evolved into working both with developers and with a church, introducing them to each other and getting the developer to spin off 3-5 acres for religious use.

By JAMES HAMES

Senior Reporter