To address questions arising over the sale of the synod administration building on Mayfair Road in Milwaukee, Wis., and the purchase of a replacement building in Pewaukee, Wis., a list of frequently asked questions has been posted on Connect, the synod’s intranet for congregational resources.

Early last year, the synod was approached with an offer to purchase its current building. Upon acceptance of that offer, a search was initiated, and ultimately a building in Pewaukee was purchased. When, at the last minute, the purchaser of the Mayfair Road property surprisingly withdrew the purchase offer, it was decided that both locations would be put on the market to minimize cost and risk to the synod.

Here are some of the most frequently asked questions:

Why did the synod administration feel the need to relocate offices?

A study indicated that the current administration building requires $1.5-$2.0 million in repairs and maintenance work. At roughly the same time, the synod received an attractive, unsolicited offer to purchase the administration office buildings from a developer. The sale of the building on Mayfair Road provided the possibility of relocating without the need to allocate mission dollars for the repair of the current headquarters.

Why wasn’t the purchase of the Pewaukee property contingent on the sale of the Mayfair Road property?

Offers for the purchase of the Pewaukee property contingent on the sale of the Mayfair Road property were rejected. Basically, the Pewaukee property was able to be purchased well below the market because it was the equivalent of a short sale, which required the purchase to be completed quickly and without contingencies.

Did the developer put down “earnest money” as a deposit?

Yes. As is typical in commercial real estate transactions, the earnest money was refundable until the end of the due diligence period in early November. A non-refundable deposit would have been required at that time, but the developer withdrew his offer to purchase before the end of the due diligence period.

Why did the sale of the Mayfair Road property fall through?

The developer concluded very late in the investigation period that their proposed development for the site was not economically feasible.

Is the synod at risk of losing substantial amounts of money?

No. Both properties have substantial value, and one of them will be sold. However, there are additional costs of owning two properties, and relocation may cost more than previously thought.

Why is the synod putting both buildings up for sale?

The Synodical Council concluded that either site satisfies the synod’s ministry needs, so both were put up for sale to reduce the likelihood of owning two buildings and incurring the associated operating costs for an extended period. The preference is to relocate to the Pewaukee site because of its condition and its potential for housing the synod archives; however, its condition and location make this property very sellable in the short-term at or above its purchase price. If the Pewaukee building sells first, the Synodical Council recognizes that over the short term $1.5-$2.0 million will be needed to address deferred maintenance at the Mayfair Road property.