8275 W Amarillo Blvd, Amarillo, TX 79124 Buyer: Power Church (Pentecostal congregation, Amarillo TX) Use Plan: 1500-seat sanctuary + 9 income-generating uses (gym, daycare, café, conference rentals, weddings, banquet hall, multi-tenant office, recording studio, sports/event facility) Research Date: 2026-05-04 Bank: First State Bank Spearman (refi underwriter at month 13) Critical Hurdle: ARV must clear $8.24M for 75% LTV refi to deliver $6.18M payoff against the $6M total project basis.
| Attribute | Value | Source |
|---|---|---|
| Address | 8275 W Amarillo Blvd, Amarillo TX 79124 | LoopNet listing |
| APN / Parcel | 216600 (PRAD ref R005754004650) | Crexi property records |
| Building size | 83,422 sq ft | LoopNet, Llano Realty |
| Lot size | 10.61 acres / 463,071 sq ft | LoopNet |
| Parking | 629 spaces (7.54/1,000 sf) | LoopNet |
| Year built | 1998 | LoopNet |
| Zoning | HC – Heavy Commercial | LoopNet |
| List price | $5,500,000 ($65.93/sf) | Llano Realty / Deeter Prater |
| Status | Vacant ~2.5 years | listing history |
| Restriction | Restrictive covenant prevents future use as a movie theater | LoopNet listing |
| Power Church target close | $4.0M effective + $2.0M renovation = $6.0M total basis | Buyer plan |
| Refi hurdle (75% LTV) | $8.24M minimum appraisal | First State Bank Spearman terms |
Sources: - LoopNet listing 27169248 - Crexi property record APN 216600 - LoopNet property record R005754004650
| Source | Range $/sf for new church construction | Notes |
|---|---|---|
| Fellowship Development (2026) | $200 – $500/sf | Excludes land, FF&E, AV |
| China Steel Build Sales (2025) | $150 – $300/sf | Steel-frame church |
| Maxx Builders TX 2025–2026 | $190 – $340/sf | All Texas commercial |
| McKnight Group ballpark | $250 – $450/sf | Mid-range traditional |
Texas Panhandle adjustment: Amarillo is a low-cost secondary market — labor and materials run roughly 10–15% below Houston/Austin; closer to Lubbock/Waco rates. Use $220 – $260/sf for ground-up church/assembly construction in Amarillo (2025–26).
83,422 sf × $240/sf (midpoint Amarillo new-build) = $20.02M RCN
That figure is what an all-new 83,422 sf church would cost from scratch in Amarillo today.
For a 1998-built shell renovated to “like-new” condition in 2026, appraisers typically apply: - Effective age ~10–15 years (post-renovation) = ~25–30% depreciation factor - Special-use functional obsolescence (sloped floors, fixed seating risers, theater pods) = additional 15–20% physical-functional discount unless those areas are demolished and re-floored
Replacement-cost ARV calculation:
| Variable | Value |
|---|---|
| RCN (new construction equivalent) | $20.02M |
| Less depreciation (25%) | -$5.00M |
| Less functional obsolescence — uncured theater pods (15%) | -$3.00M |
| Plus land value (10.61 acres × $5–$7/sf retail-corridor) | $2.30M – $3.24M |
| RCN-derived ARV | $14.32M – $15.26M |
The cost approach actually delivers the highest number because Amarillo new-build costs are high relative to special-purpose resale. Banks discount this by 30–40% when financing special-purpose properties because the cost-to-replicate doesn’t equal market demand. A defensible cost-approach number after the bank’s haircut: $10.0M – $11.0M.
Sources: - Texas Commercial Construction Cost 2025–2026 — Maxx Builders - How Much Does It Cost to Build a Church in 2026 — Fellowship Development - Cost to Build a Church $150–$300/sf — China Steel Build Sales - Construction Cost Per Square Foot in Texas 2026 — JDJ Consulting
| Asset class | Cap rate | Source |
|---|---|---|
| TX commercial broad market Q4 2025 | 7.0 – 8.0% | Terrydale Capital outlook |
| TX class B/C secondary suburban | 6.5 – 7.0%+ | SITG Capital |
| TX special-purpose religious example | 8.23% | Listed San Antonio church (LoopNet) |
| TX multi-tenant retail/event venues | 7.0 – 8.5% | Crexi/LoopNet comps |
| Special-use church (defensive bank) | 9.0 – 10.0% | Bank-conservative haircut |
Power Church revenue plan (Layer 2 “Conservative”): $1.2M annual gross revenue from 9 income streams.
For a multi-tenant church/event/childcare/gym mixed-use building, opex ratio runs 35–45% (utilities, insurance, maintenance, custodial, basic admin — religious-use property tax exemption applies under TX Tax Code §11.20 for the worship portion only; revenue-generating square footage is taxable). Use 40% midpoint.
| Cap rate scenario | Implied ARV |
|---|---|
| 7.0% (aggressive — multi-tenant treatment) | $10.29M |
| 8.0% (mid — mixed-use blend) | $9.00M |
| 9.0% (defensive — special-purpose church) | $8.00M |
| 10.0% (worst case — pure special-use) | $7.20M |
Income-approach ARV range: $7.2M – $10.3M, mid-point ~$9.0M.
This is the approach a bank actually uses for refi underwriting on a mixed-use cash-flowing property. Power Church’s hurdle of $8.24M sits at an 8.74% cap rate — well within defensible Texas market range, but it requires the $1.2M revenue projection to be documented (signed leases, daycare enrollment, gym memberships) before the appraiser puts pen to paper.
Sources: - Texas Commercial Real Estate Outlook Q4 2025 — Terrydale Capital - Cap Rates in Houston and Dallas: 2025 Investor’s Guide — SITG Capital - Texas Religious Organizations Property Tax Exemption — Freeman Law
| Property | Date | Sqft | Sale price | $/sf | Source |
|---|---|---|---|---|---|
| AMC Hickory Creek 16 → Thousand Hills Church (TX, Dallas metro) | Dec 2020 | 60,000 | undisclosed (2000 build cost was $12M) | ~$200/sf build | thousandhillspeople.org / Cinema Treasures |
| Cinemagic Rochester MN → Echo Church | 2022 | 44,000 | $4.9M | $111/sf | Star Tribune |
| AMC Star Southfield → Triumph Church (MI) | May 2024 | large multiplex | undisclosed | n/a | Detroit Metro Times |
| Elvis Cinemas Littleton CO → Redemption Hills Church | Apr 2026 | 34,500 | $2.8M | $81/sf | BusinessDen |
| Westdale Theater (IA) → auction | 2018 | – | $750K | – | Corridor Business |
Theater-to-church $/sf range: $81 – $200/sf, weighted toward $100–$130/sf for as-is acquisitions, $180–$220/sf post-renovation.
| Source | $/sf data | Market |
|---|---|---|
| LoopNet Houston churches average | $145/sf | Houston (avg 21,103 sf properties) |
| LoopNet Lubbock churches average | $75/sf | Lubbock (smaller, similar Panhandle market) |
| LoopNet Amarillo churches | $495K – $2.95M listings, avg $1.88M | Amarillo (smaller properties) |
If Power Church executes the renovation and the building presents as a turn-key 83,422 sf multi-use facility with 1500-seat sanctuary + 9 income streams, defensible $/sf is:
| Scenario | $/sf | Implied ARV |
|---|---|---|
| Conservative (Lubbock-style Panhandle special-use) | $90/sf | $7.51M |
| Mid (Houston-blended Texas religious) | $110/sf | $9.18M |
| Aggressive (post-reno like-new comps) | $130/sf | $10.84M |
| Premium (mixed-use with executed leases) | $150/sf | $12.51M |
Comp-based ARV range: $7.5M – $10.8M, mid-point ~$9.2M.
The Potter-Randall Appraisal District (PRAD) public portal at esearch.prad.org is a React-rendered SPA — not directly scrapable via curl/WebFetch (returns the React shell, not data). The portal requires manual interactive search.
Texas commercial properties are typically assessed at 70–90% of market value under appraisal district practice. The seller (Regal/Cineworld) has been paying property tax during the 2.5-year vacancy. Theater properties post-pandemic have seen aggressive assessment reductions — the American Property Tax Counsel documents 30–50% reductions for vacant cinemas.
Estimated tax-assessed value (pre-renovation): $2.5M – $3.8M - This implies seller’s basis is depressed; supports Angel’s $4M effective negotiation. - Post-renovation re-assessment will reset to market — but the worship-portion (40%) qualifies for TX §11.20 religious property tax exemption, materially reducing post-close tax burden.
Assessed × (1 / 0.80) = market-value implied floor: - $2.5M / 0.80 = $3.13M floor - $3.8M / 0.80 = $4.75M floor
This is the pre-renovation market floor and is consistent with the negotiated $4M effective acquisition basis. Post-renovation ARV is not bounded by current tax assessment — it’s bounded by the cost and income approaches.
ACTION ITEM: Angel should pull the actual PRAD record manually at esearch.prad.org before submission. Search address “8275 Amarillo” — takes ~2 minutes and gives the bank-defensible exact figure. Phone: (806) 358-1601.
Sources: - PRAD Public Portal - PRAD eSearch Property Lookup - Pandemic Hits Movie Theater Property Values — APTC - TX Tax Code §11.20 — Religious Organizations Exemption
A pure single-purpose church property triggers a 20–30% appraisal discount from commercial banks because: - Resale market is thin (limited buyer pool: only other churches) - Bank treats it as a “single-tenant, single-credit” risk concentrated in the congregation - FDIC and OCC examiners flag religious-only collateral as illiquid
Quote from Texas Commercial Appraisals: “Church and religious facilities can be deemed as ‘special use’ properties from a commercial real estate appraisal standpoint.” — txcommercialappraisals.com
The buyer’s structure deliberately avoids single-purpose treatment: - 40% of sqft = sanctuary/worship (33,369 sf) - 60% of sqft = commercial revenue uses (50,053 sf) - Income from revenue uses is projected at 100% of operating revenue (the worship portion is donation-funded, doesn’t pay rent to itself in the appraisal)
When 50%+ of building income comes from non-worship commercial leases (gym, daycare, café, conference, multi-tenant office, recording studio, banquet/event), the property reclassifies as mixed-use special-purpose-with-commercial and the appraiser is justified in using:
This typically reduces the special-purpose discount from 25% → 5–10%.
For the appraiser to weight the income approach heavily (which is what gets to $8.24M+), Power Church needs at appraisal time: - Signed leases or letters of intent for at least 50% of revenue-generating square footage - Daycare licensing in process or approved (TX Health & Human Services minimum standards) - Documented historical or pro-forma 6-month operating P&L for at least 2 of the 9 streams
Without those, the bank’s appraiser defaults to special-purpose treatment and the cost approach ceiling — pushing the number toward the $7.2M – $8.0M floor.
First State Bank Spearman is a Texas Panhandle community bank. Community banks in the Panhandle on church/mixed-use deals typically: - Order appraisals from local TX-licensed MAI appraisers (one of ~3 Amarillo firms) - Weight comparable sales heavily in low-comp-volume Panhandle market - Apply a 5–10% conservative haircut on appraised value before LTV calc - Want to see income approach supported by signed leases, not pro forma
Implication: Even a $9.0M appraisal from a comp-blended approach gets haircut to ~$8.1–$8.55M for LTV math. The deal works at appraisal $8.24M minimum, but the safety margin is thin — Power Church should target the appraiser pulling toward $9.0M+ to leave headroom.
| Approach | Low ARV | Mid ARV | High ARV | What has to be true |
|---|---|---|---|---|
| Cost (replacement) | $10.0M | $13.0M | $15.3M | Appraiser uses RCN with standard depreciation; bank doesn’t apply special-purpose haircut. Used as ceiling, rarely as primary. |
| Income (cap rate) | $7.2M (10% cap, defensive) | $9.0M (8% cap, mixed-use) | $10.3M (7% cap, multi-tenant retail-style) | $1.2M gross revenue documented; 40% opex assumption defensible; 50%+ commercial leases signed. |
| Comp sales | $7.5M ($90/sf, Panhandle special-use) | $9.2M ($110/sf, Houston-blend) | $10.8M ($130/sf, post-reno like-new) | Comparable theater-to-church and large TX religious assemblies hold $/sf assumption; renovation delivered turnkey. |
| Tax-assessed floor | $3.1M (current vacant) | $4.75M (current vacant) | $6.0M (post-reno reset) | Pre-renovation only; post-renovation re-assessed to market. |
| Blended (60% income / 30% comps / 10% cost) | $7.5M | $9.1M | $11.0M | Bank’s most likely weighting on a mixed-use cash-flowing property. |
LOW SCENARIO — $7.5M (deal fails refi) - Conditions: Power Church can’t show signed commercial leases at appraisal time; appraiser defaults to special-purpose treatment; uses Lubbock-rate $/sf comps and 9–10% cap on undocumented pro forma. - Probability: 25% - Outcome: Refi at $7.5M × 75% = $5.63M proceeds. Short by $550K against $6.18M target. Deal needs cash injection or seller-carry extension.
MID SCENARIO — $9.0M – $9.2M (deal works comfortably) - Conditions: Power Church has 3–5 signed commercial leases (gym + daycare + 2 office tenants minimum), 6 months of operating revenue showing, weddings/events booked through end of year 2. - Probability: 50% - Outcome: Refi at $9.0M × 75% = $6.75M. Clears $6.18M target with $570K cushion. This is the realistic base case.
HIGH SCENARIO — $10.5M – $11.0M (deal banks easily, equity participation upside) - Conditions: All 9 revenue streams operational; weddings booked 12+ months out; daycare at capacity; recording studio with name-talent client; multi-tenant office >85% leased; mixed-use treatment fully embraced by appraiser. - Probability: 25% - Outcome: Refi at $10.75M × 75% = $8.06M. Massive cushion; potentially supports cash-out refinance at higher LTV.
First State Bank Spearman, on a mixed-use church-plus-revenue building, will weight: 1. Income approach: 50–60% (this is the bank’s preferred method for cash-flowing commercial property) 2. Sales comparison: 30–40% (limited Panhandle comps make this secondary but important) 3. Cost approach: 10–15% (used as a ceiling sanity check, not a primary driver)
The actual appraisal number will track most closely to the income approach, which means the $1.2M gross revenue projection has to be defensibly documented at appraisal time — preferably with at least 6 months of actual operating data showing the model works.
Single-number planning value: $9.1M. This represents: - 60% weight to income approach at 8.0% cap on $720K NOI = $9.0M - 30% weight to comp sales at $110/sf Texas religious-mixed-use = $9.2M - 10% weight to cost approach with bank haircut = $10.0M
At $9.1M ARV × 75% LTV = $6.83M refi proceeds, which clears the $6.18M payoff target with $650K of cushion — enough to absorb appraisal volatility, closing costs, and 1–2 quarters of operating capex without breaking the deal.
Critical execution dependencies for hitting $9.1M: 1. Sign ≥50% of commercial-use square footage to leases or LOIs before month 11. 2. Get 6 months of P&L showing the income model works before the appraiser walks the building. 3. Use a local TX-Panhandle MAI appraiser who has done church-mixed-use work before — ask First State Bank Spearman for their preferred appraiser list and influence the selection. 4. Document the renovation receipts ($2M actual capital deployed) and present as a labeled improvement schedule by use type.
If any of those four legs is missing at appraisal time, the number drops toward the LOW scenario ($7.5M) and the deal needs structural rescue (bridge loan extension, equity injection, seller carryback).