Hartford Business Journal

HARTFORDBUSINESS.COM | DECEMBER 19, 2022 5 Deal Watch This 21,000-square-foot Gothic-style church in Norwich, at 2 Union St., sold in March and is being considered for multifamily redevelopment. PHOTO | COSTAR A Hope And A Prayer With glut of available religious properties, buyers need creativity, vision to redevelop old churches By Hanna Snyder Gambini hgambini@hartfordbusiness.com C olonial, Cape and bungalow are common terms used to describe the architectural style of homes and residences. Gothic, Baroque or Byzantine are slightly less common terms used for residential or retail design. But as more churches and houses of worship are coming on the real estate market — and many are converted into housing — brokers and developers are facing opportuni- ties and challenges when repurposing these unique and sacred structures. Since 2021 at least 16 religious properties have traded hands in Greater Hartford and New Haven, according to data from realty tracking service CoStar. At least nine religious properties are currently for sale in Greater Hartford alone. In March, real estate agents Andy and Mike Schilke of Rhode Island-based Schilke Realty sold for $340,000 a 21,000-square-foot Gothic-style church at 2 Union St., in the heart of downtown Norwich. Built in 1891 and renovated in 1975, the property can hold more than 500 people in the common areas. An additional wing has four levels used as offices, classrooms, storage and meeting rooms, and it also has a large commercial kitchen. "We definitely had investors who saw housing opportunities, a few were thinking community centers," Andy Schilke said. "It was a tough property from the perspective that it was almost 21,000 square feet with no parking." Lack of parking is one obstacle with many urban churches. The topography — it was built into the back of a hill — didn't make it ideal for demolition and new construction, "so it really came down to finding a good use," Schilke said. The buyer, a New York-based real estate investor, has pitched ideas for multifamily housing units in one part of the former church and an events hall in the open sanctuary area. A 2018 church sale was a bit easier for the Schilke partners. The Old Mystic Baptist Church on Shewville Road in Groton, is under 10,000 square feet, sitting on 5 acres with 140 parking spaces. That property generated a lot of interest, including from a funeral home operator. It eventually sold to another reli- gious group, the New London Church of Christ. Schilke said there are challenges when selling church properties as more come on the market. "What we saw with both churches were fewer parishioners trying to support large buildings," Schilke said. For sale Commercial real estate agent Jim Basquil of Hartford-based Colliers Associates, has listed and sold multiple properties for the Archdiocese of Hartford, including churches, convents and schools. He said each listing is unique. Often, developers can easily visu- alize converting a school or convent into apartments. Agents and buyers face greater challenges in the church properties, especially ones that are centuries old or deemed historic. Buyers often "have to figure out a use for the church because churches are not structured like schools," Basquil said. Amid declining church attendance and financial struggles, the Archdi- ocese of Hartford estimates it has sold approximately 105 buildings, including 25 churches, in the last five years since beginning its Pastoral Planning process, which helps parishes implement strategic plans for their properties. Archdiocese officials said chal- lenges relate to the number of church properties on the market as other religious organizations are looking to sell or repurpose properties. Other obstacles include building location and condition, and avail- ability of buyers who can qualify for financing. The Archdiocese said most of its church buildings have been sold to other churches. Buildings, like schools or rectories, have gone to municipalities or other schools. In a recent deal, a buyer purchased the former St. Peter school, convent and church, and St. Augustine school, all in Hartford, with plans to transform all buildings except the church into apartments. Sometimes "it's hard to imagine these churches as housing, and converting a large, open church into (apartment) units is cost-prohibitive," Basquil said. Common ideas for large goth- ic-style houses of worship include entertainment venues or community centers. For example, lawyer Jose L. Del Castillo is working on plans to convert the former downtown Hartford Ados Israel Synagogue at 215 Pearl St., into an events space for parties, weddings and large gatherings. The architecture on many of these centuries-old structures is "magnifi- The open sanctuary area in the former church property at 2 Union St. in Norwich could become an events hall. PHOTO | COSTAR

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