5 Benefits of Churches Hiring a Commercial Real Estate Agent

1. SAVE TIME: By hiring a commercial real estate agent to handle their sale and lease listings, the property owner is freeing himself of the time it takes to create and update listings on the various commercial real estate listing services, field phone calls and e-mails from prospective tenants or their agents, show the property, handle a negotiation and facilitate a closing whether that be preparing and executing a lease document or managing an escrow through its process.

2. SAVE MONEY: For starters, commercial real estate agents who represent a buyer or a tenant are paid a commission. Generally speaking, we do not charge our buyers/tenants a fee; instead we are paid a commission from the landlord/owner. More importantly, though, commercial real estate agents save our clients’ money because we have the skills to negotiate the best deal on all parts of the transaction.

3. LISTING ACCESS: Most churches are aware that commercial real estate listings are not as centralized as they are in residential real estate. Because there are so many different property and transactions types, commercial real estate has several different listing platforms, and only a couple of them are open to the public.

4. MARKET KNOWLEDGE & SPECIALIZATION: Commercial real estate agents have a market knowledge that our clients, both tenants/buyers and landlords/sellers do not have.

5. CONTACTS: Commercial real estate agents are well connected individuals. We are constantly in touch with our market’s movers and shakers: business owners, investors, property owners, our colleagues, politicians, etc. We are always networking and this wealth of contacts is a huge benefit to our clients.

Church | Land Transactions

The Religious Real Estate Review

10100 Business ParkwayLanham, MD 20706

July 2016 | Issue 1 Published By Marcus N. Daniels & Edward H. Luckett

3431 13th St., NW, Washington, DC SOLD

6031 Ammendale Road, Beltsville, MD SOLD

10727 Tucker Street, Beltsville, MD SOLD

5300 SE Crain HighwayUpper Marlboro, MD SOLD

Featured Church Transactions Sold by NAI Michael: Available Properties | Land for Sale Suited for Churches:

Edward H. Luckett

+1 301 918 2918eluckett@naimichael.com

For more information, contact:

Marcus N. Daniels

+1 301 459 2954mdaniels@naimichael.com

About The Religious Real Estate Review

The Religious Real Estate Review provides the religious and faith

community with up to date news on real estate development activities

in the Washington Metropolitan region. Every quarter, we will provide

updates on recent transactions, church development, important news

and upcoming events. Marcus Daniels and Ed Luckett of NAI Michael

are the editors and publishers of this quarterly newsletter and have

over 30 years of experience in commercial real estate.

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. Floor plans, site plans and other graphic representations of this property have been reduced and reproduced, and are not necessarily to scale. All information should be verified prior to purchase or lease.

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6505 & 6520 Johensu Drive,Upper Marlboro, MD AVAILABLE

13201 Old Fort RoadFt. Washington, MD AVAILABLE

609 Jones Road, Severn, MDAVAILABLE

4350 Branch Avenue, Temple Hills, MD AVAILABLE

Sign up now to receive future issues of The Religious Real Estate Review:

CALL 301-459-2954VISIT naimichael.com/religiousTEXT “religious” to 22828

“Inaugural Creating Kingdom Buildings ConferenceGathers Real Estate Industry Leaders to TeachPastors How to Build their Houses of Worship”

NAI The Michael Companies, Inc. | 10100 Business Parkway | Lanham, Maryland 20706 | +1 301 459 4400 | naimichael.comNAI The Michael Companies, Inc. | 10100 Business Parkway | Lanham, Maryland 20706 | +1 301 459 4400 | naimichael.com

The Sanctuary at Kingdom Square Purchases Sheehy Dealership

The Sanctuary at Kingdom Square will soon have a new location. Their plans include leaving their current location in Capitol Heights inside the beltway on Central Avenue, and moving into the former Sheehy Auto Dealership in Upper Marlboro, situated at the intersection of Route 301 and Route 4, Pennsylvania Avenue.

Their recent purchase of the former auto dealership and planned renovation is just part of a much bigger plan. This plan includes a complete redevelopment of their existing home into a beautiful and modern mixed-use project. The transformative project will include a mix of office spaces, retail businesses, apartments, and a hotel. Their new home, ideally situated directly on Route 301, will give their Church room to grow as well as provide easier and more convenient access to their current and future congregants. The property was sold in November 2015 by NAI Michael.

The Inaugural Creating Kingdom Buildings Conference brought together industry leaders in real estate, civil engineering, zoning & land use, architecture, construction, finance and risk management in the Washington Metropolitan Area to educate the faith community on how to successfully grow and build their houses of worship.

Over 200 attendees representing more than 100 churches gathered at The Sanctuary at Kingdom Square in Capitol Heights, MD on Saturday, April 30th. They learned more about the building process for houses for worship, identifying their congregations’ needs for space, assembling a project team, preparing their finances, determining the right location, hiring the architect & contractor, maintaining the property and managing the risks associated with their property. With seminars and speakers on how to acquire, create and maintain

optimal worship spaces, the conference featured speakers from NAI Michael, Linowes and Blocher LLP, Ben Dyer Associates Inc., EagleBank, Industrial Bank, Arel Architects, SAA Architecture and more.

NAI Michael was a Platinum Sponsor of the Creating Kingdom Buildings Conference and Ed Luckett and Marcus Daniels participated in the Site Selection panel discussion as panelists and moderators respectively.

To learn more about the Creating Kingdom Buildings Conference, please visit: www.collectiveempowermentgroup.org

To sign up for next year’s conference, please contactEd Luckett and Marcus Daniels at 301-459-4400.

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Q. What agency is responsible for notifying and resolving the churches tax exempt status matter?

A. Federal church tax exempt status (referred to as a 501(c)(3)) is granted by the IRS. However, if a church meets the five criteria listed in IRC Section 501(c)(3), it is automatically considered to be tax exempt by the IRS. For extra certainty a church can file a State IRS Application Form 1023. For the real property tax exemption, churches need to contact the State Real Property Tax office that is located in each County. For contact information, please call Ed or Marcus at NAI Michael.

NOTE: Failure to comply with this requirement could become a very expensive mistake!

Q. What do churches need to do to become tax exempt from real property taxes - besides filing as a tax exempt organization with the IRS?

A. A church (if it meets the five criteria listed in Section 501(c)(3) of the Internal Revenue Code) is automatically considered to be a tax-exempt organization. To become exempt from local real property taxes is a separate action that includes the local government. There is a formal application and legal process that must be followed and legal criteria to be proved in order for a church to obtain the local real property tax exemption.

Q. If we need assistance with filing your tax exempt status application, who should we contact?

A. We recommend that you consult with a lawyer who is versed in the process of obtaining the tax exempt status designation and disputing any claims against your tax exempt status. Remember – the people in government are there to maximize tax revenue to support the operation of government. They do not have the motivation to help churches to navigate through this process.

For more information, please feel free to call Ed Luckett and Marcus Daniels directly at 301-459-4400 or via e-mail at eluckett@naimichael.com and mdaniels@naimichael.com

Pictured: 5300 Crain Highway, former Sheehy Dealership & future home of the Sanctuary at Kingdom Square

Pictured L to R: Stephen Mauersberg (Ben Dyer Associates, Inc.), Midgett Parker (Linowes & Blocher, LLP), Stephen Ferrandi (PraiseBuildings, Inc.), Edward H. Luckett and Marcus N. Daniels (NAI Michael)

Churches May Be Subject To Real Estate Property Taxes

Have you received a notice challenging your tax exemption status? If so, you will have to file the standard application for the real property tax exemption with your local tax assessor’s office. Do not wait until the last minute!

Be advised that the real property tax exemption is not automatic. You have to apply for it and meet specific criteria for the tax exemption to be granted. You can apply for tax exemption status by visiting the IRS website at www.irs.gov.

Tax Exemption FAQ