St. Matthew's United Methodist

Case Study

Facing the many challenges imposed on today's non-profit organizations including fund acquisition, a weak economy and decreased donations, St. Matthew's United Methodist Church needed to fill its budgetary shortfall. The congregation's most pressing need was in acquiring funding to support building improvements and expansions.

Reverend Bradley Resare of St. Matthew's United Methodist Church of Newbury Park, California, wanted to pay the congregation's $88,000 mortgage balance in full while simultaneously increasing revenue to fund urgent structural improvements. "We had problems with our pavement," the Reverend explained. "It was uneven. Due to that, we had our sanctuary flooded. Our bathrooms were in such horrid conditions that many people, who took a trip to our bathrooms wouldn't return to visit us again. It's like going to the restaurant and visiting its restrooms. The condition of the restroom tells a lot about the place. When people first come to God, they don't have a commitment. So, first impression is oftentimes the last impression." The congregation had two wireless tenants on their property, Verizon and Cingular, who paid monthly rents of $1,200 and $650, respectively. This revenue represented a vital piece of the Church's overall budget. The Church Board believed this income stream was guaranteed for the next 15 years and budgeted as such. When Reverend Resare learned about Wireless Capital, he was immediately intrigued by the opportunity to turn both cell site leases into immediate cash to fund urgent facility renovations. In discussing his options, he learned that the wireless lease income wasn't as secure as the Church thought, and that Wireless Capital had already assisted several churches, and other non-profit organizations, in the same manner.

Wireless Capital was invited to present relevant telecom information and instruct the Church Finance Board on possible scenarios that could negatively affect the organization's budget. They discovered that, with a plethora of mergers and acquisitions in the telecom field, carriers often approached landlords to offer a rent reduction in exchange for a rent guarantee for the next term. In many instances, landlords have no choice but to succumb to the wireless tenant threats in fear of losing their rental income.

After careful deliberations with the Church Board, the congregation decided to sell both leases in exchange for a significant upfront payment. Their decision was influenced not only by possible site decommissioning threats, but also by their operational needs and Wireless Capital's professionalism. "The Wireless Capital team has changed our attitude," states Reverend Resare. "They expressed the interest in the church's needs, made sure it was a win/win situation for both parties and treated us with the utmost honesty and respect. They were not pushing or rushing our decision, but they were moving at a pace that we were comfortable with." The St. Matthew's Church earned $125,000 from the sale of both wireless leases. Using this revenue, they were able to pay off their $88,000 mortgage and become debt free. The remaining profit funded building repairs; the patio and bathroom were replaced and the drainage system was finally fixed. "It created a momentum of beautification," explained Reverend Resare.

Several months after the sale, the Reverend received a letter from his wireless tenant pushing for a rent reduction to guarantee their continued occupancy. He simply directed the company to Wireless Capital and avoided the stress of threats and negotiations.

Through their interaction with Wireless Capital Partners, the congregation gained knowledge about current industry trends, received experienced input and advice, and learned about their telecom lease options. The congregation was thus able to make the wisest, most informed decision possible.